As a business owner or individual, it is important to understand the limitation period for breach of contract in New Zealand. A limitation period is the time frame within which a legal action must be taken against a party for breach of contract. Failure to initiate legal proceedings within the limitation period may result in the case being thrown out of court.

The limitation period for breach of contract in New Zealand is governed by the Limitation Act 2010. The Act stipulates that an action for breach of contract must be taken within six years from the date that the cause of action arose.

It is important to note that the date of breach of contract is not necessarily the same as the date when the breach was discovered. The limitation period starts from the date when the breach occurred, regardless of whether the breach was discovered at that time or not.

In some cases, the six-year limitation period may be extended. For example, if the party responsible for the breach of contract has deliberately concealed their actions, the limitation period may be extended by up to three years. Additionally, if the party seeking legal action was unaware of the breach of contract until a later date, the limitation period may begin from the time when the breach was discovered.

It is important to seek legal advice as soon as possible if you believe there has been a breach of contract. Delaying legal action can result in the limitation period expiring, leaving you with no legal recourse. A lawyer can advise you on the best course of action, including whether to initiate legal proceedings or attempt to negotiate a resolution with the other party.

In conclusion, the limitation period for breach of contract in New Zealand is six years from the date of the breach. It is important to seek legal advice as soon as possible to ensure that legal proceedings are initiated within this time frame. Remember to keep track of important dates and seek legal guidance if you are unsure of your rights and options.