Legal Basis on Limitation Period under PICC

This reviews, through relevant Arts of the PICC regarding limitation periods and the precedents, its equivalent legal basis. It handles mainly ‘scope of limitation period’, ‘its modification and renewal’, ‘suspension of period’, and ‘effect of expiration of limitation period’. The exercise of rights governed by PICC is barred by the expiration of a period of time, limitation period. Mandatory rules on limitation periods of national, international or supranational origin prevail over the rules in PICC. The PICC provides a 3 years general limitation period and a 10 years maximum one. However, if necessary, the parties may modify them by themselves with limits. At the obligor's acknowledgment of the obligee's right before the expiration of the general limitation period, a new one begins. The running of the limitation period is suspended by judicial or arbitral proceedings. Also, in case of alternative dispute resolutions used before resorting to court or arbitration, force majeure, death or incapacity, it is same as such. The expiration of the limitation period does not extinguish the right, but only bars its exercise. The effects of the expiration of limitation period do not occur automatically and only occur if the obligor raises the expiration as a defense.