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Pre-action conduct and limitation — SQE1 DR question

A worked single-best-answer question on pre-action conduct and limitation, with why each wrong option is wrong — the way SQE1 traps candidates.

Pre-action conduct and limitation

On 2 January 2019 Fenwick Logistics Ltd signed a written contract (not a deed) with Corvan Systems Ltd for the supply and installation of a warehouse management system. Corvan delivered and installed the system on 14 March 2020, but it never worked to the contractual specification. Fenwick only realised in late 2021 that the faults were caused by defective design rather than teething problems. Fenwick now wishes to sue Corvan for breach of contract and consults a solicitor on 1 February 2026.

Which of the following best describes the limitation position for Fenwick's claim in contract?

  1. AThe limitation period expired on 2 January 2025, six years after the contract was signed.
  2. BThe limitation period will expire on 14 March 2026, six years after the defective system was delivered and installed.
  3. CThe limitation period will expire on 14 March 2032, twelve years after the defective system was delivered and installed.
  4. DThe limitation period runs for six years from late 2021, when Fenwick discovered the cause of the faults.
  5. EThe limitation period runs for three years from late 2021, the date on which Fenwick had the knowledge required to bring a claim.
Show answer and reasoning
B is the best answer. An action founded on simple contract must be brought within six years from the date on which the cause of action accrued (Limitation Act 1980, s 5). A cause of action in contract accrues on breach, not on discovery of loss; here the breach occurred when Corvan delivered a non-conforming system on 14 March 2020. Fenwick must therefore issue proceedings before that six-year period ends.

Rule: A claim in simple contract must be brought within six years of breach, regardless of when the claimant discovers the breach or its consequences.

  • A Time runs from breach, not from the date the contract was made, and no breach had occurred on signature. (wrong rule)
  • C The twelve-year period in s 8 applies only to actions on a specialty such as a deed, and this contract was not a deed. (right rule, wrong facts)
  • D In contract time is not postponed until discovery unless there is fraud, concealment or mistake under s 32, none of which is suggested. (wrong rule)
  • E The s 14A latent damage extension applies to actions in negligence, not to claims for breach of contract. (wrong rule)

Source: Limitation Act 1980, ss 5, 8, 14A and 32; Iron Trade Mutual Insurance Co Ltd v J K Buckenham Ltd [1990] 1 All ER 808

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