Statute of limitations in civil law

In short: A statute of limitations means that a claim can no longer be enforced in court after a certain period has expired. It is meant to create legal certainty and prevent claims from being asserted indefinitely.

In more detail: The standard limitation period in German civil law is three years and usually begins at the end of the year in which the claim arose and the creditor became aware of it.

In detail

Not legal advice.

• Standard limitation period: Most contractual claims, such as those from purchase agreements, expire after three years.
• Start of the period: The period only begins once the creditor knows, or should have known, about the claim and the identity of the debtor.
• Different periods: Longer or shorter periods apply to certain claims, for example construction defects or compensation for personal injury.
• Suspension of limitation: Negotiations between the parties or filing a lawsuit can temporarily pause the running of the period.
• Restart: If the debtor explicitly acknowledges the claim, for example through a partial payment, the limitation period starts over.
• Effect after expiry: After the limitation period expires, the claim legally still exists but can no longer be enforced if the debtor invokes the statute of limitations.
• Difference from a cutoff deadline: Unlike a statute of limitations, a claim is extinguished entirely under a cutoff deadline once that deadline passes (vertragsstrafe-grundlagen).