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ARTICLE · 16 OCTOBER 2008

Limitation Periods On Guarantees

On January 1, 2004, Ontarios Limitations Act, 2002 (the Act) came into force.

CanadaCorporate/Commercial Law

Limitation Periods in Ontario

On January 1, 2004, Ontario's Limitations Act, 20021 (the "Act") came into force. The Act limits the period of time during which a person may initiate court proceedings in respect of a claim. For the purposes of the Act, a claim is defined as "a claim to remedy an injury, loss or damage that occurred as a result of an act or omission."2

The Act establishes a basic two year limitation period (the "Basic Period"), subject to certain exceptions, which commences on the earlier of the day the essential elements of a claim are known to the claimant and the day a reasonable person ought to have discovered them. There is a rebuttable presumption that a claimant discovered all of the essential elements of the claim on the day the act or omission causing the loss or damage occurred.

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