§ 1. The Act applies to claims for money and other performance owed

As a general rule, the Limitation Act (foreldelsesloven) applies to claims (krav) for money and other performance owed (ytelser). This means that a claim can become too old if it is not followed up in time. But if another law has its own rule on limitation (foreldelse), that special rule takes precedence.

The Limitation Act·LOV-1979-05-18-18

Machine-translated from Norwegian. The Norwegian text is the one that applies. Read the original in Norwegian.Norsk English العربية Polski Українська

The text of the law (unofficial translation)

1. A claim (fordring) for money or other performance owed becomes time-barred (foreldet) under the rules of this Act unless otherwise provided by law.

2. Limitation in international sales relationships is governed by the New York Convention (New York-konvensjonen) of 14 June 1974, as worded in the Norwegian translation published in Norsk Lovtidend. The King may nevertheless decide that the Convention shall not apply to sales contracts where both the seller and the buyer have their relevant place of business in the Nordic countries (Norway, Denmark, Finland, Iceland and Sweden).

Source: Lovdata — Foreldelsesloven (the Limitation Act) § 1

What does this mean?

§ 1 tells you what the Limitation Act is about. It is about claims. Not just loans. Not just invoices (fakturaer). Not just debt collection (inkasso). It applies to claims for money and other performance owed. Performance owed means that someone must do something or give something. In practice, however, it is monetary claims (pengekrav) people most often wonder about. It can be an unpaid invoice, a private loan, a claim after damage, a claim for repayment, a recourse claim (regresskrav), a claim for interest (renter) or a claim that arises because someone has not done what they promised.

The word "fordring" means claim. If you have a claim, it means you believe someone owes you something. If you owe someone money, you are the debtor (skyldner). The person who has the claim is the creditor (fordringshaver). These are heavy words, but they are useful. In an ordinary situation you can put it like this: Kari lent Ola NOK 20,000. Kari is the creditor. Ola is the debtor. The debt is the claim.

The point of limitation is that a claim does not last forever. If the person who has the claim sits still for too long, the right to demand payment can be lost. This does not mean that the money was never owed. It means that the claim has become too old for performance (oppfyllelse) to be demanded. This is what § 24 states more clearly later in the Act: upon limitation, the creditor loses the right to performance.

§ 1 also says something important: the Limitation Act applies only when nothing else is provided by law. This means you must always ask: is there a separate rule for exactly this type of claim? Some laws have special time limits. Some claims have their own rules in the Limitation Act itself. Other claims follow the main rule in § 2, that is, 3 years. § 1 is therefore the front door. It does not say how long the time limit is. It says that this Act is where you start.

The second paragraph concerns international sales. It is more specialised. Here the Act refers to the New York Convention of 14 June 1974 on limitation in international sales relationships. Ordinary private individuals rarely encounter this rule. It may become relevant when the seller and buyer trade across national borders, particularly in business relationships. For ordinary Norwegian claims between people or businesses in Norway, it is usually the Norwegian rules in the Limitation Act that matter.

Which claims can become time-barred?

Monetary claims can become time-barred. That is the most important rule to take away. If you have an invoice that has not been paid, a loan that has not been settled, a compensation (erstatning) claim after damage or a claim for repayment, you must keep an eye on the time limit. You cannot simply wait for many years and think the claim is safe.

The same applies to claims for other performance owed. If someone has a duty to deliver something, carry out something or hand over something, that may also fall under the Act. But in practice, many such claims are eventually turned into monetary claims. If the tradesperson does not fix the fault, you may demand a price reduction (prisavslag) or compensation. If the seller does not deliver the goods, you may demand your money back. Then you are quickly within the limitation rules.

The Limitation Act applies to both large and small claims. A claim of NOK 500 can become time-barred. A claim of NOK 5 million can become time-barred. The Act does not first ask whether the claim is important to you. It asks whether there is a claim, which time limit applies, when the time limit started to run, and whether the time limit was interrupted in time.

This is why limitation is dangerous in everyday life. People often think "but I'm right". That may be true. But if you wait too long, you can lose the opportunity to have that right upheld. It is a harsh rule, but it exists because old claims become difficult to prove. Receipts disappear. Emails are deleted. People move. Memory fades. The law wants claims to be sorted out within a reasonable time.

What happens if you get it wrong?

If you overlook limitation, you can lose the entire claim. This can happen even if you were right to begin with. That is why limitation often feels unfair. But the law is not only about who was actually right. It is also about claims having to be followed up within set time limits.

The most dangerous thing is doing nothing. You might send one message, get no reply, and let the matter rest. Then time passes. When you take it up again, the other party may say that the time limit has expired. If that is correct, it does little good that you have been patient.

Examples

Kari lends NOK 30,000 to a friend. They write a simple message on Vipps: "Loan NOK 30,000, to be repaid by 1 June." The friend does not pay. At first Kari does not want to nag. One year passes. Then two years. Then it is getting close to three years from the payment date. Kari's claim is a claim for money. This means the Limitation Act applies. If no special rule applies, the main time limit is 3 years under § 2. Kari must therefore do something before the time limit expires. It is not enough just to be annoyed. Nor is it enough to have old messages showing that the loan existed. She must make sure the time limit is interrupted, for example by the friend clearly acknowledging the claim, or by Kari taking legal action (rettslige skritt). If Kari waits too long, the friend can say that the claim is time-barred. Kari may then lose the right to demand payment, even though the loan was actually made.

Marius pays an invoice twice by mistake. He only discovers it long afterwards. He believes the company must pay back one of the payments. This is also a monetary claim. Marius has a claim for repayment. He must then look at the Limitation Act. The first question is not whether the company ought to be honest. The first question is whether the claim can still be enforced. If Marius has only just discovered the mistake, § 10 on lack of knowledge may be relevant. But the starting point is still that such claims should not be left untouched. Marius should send a written claim straight away.

Common mistakes

  1. Believing that a claim lasts forever just because it is valid
  2. Waiting to demand payment because you want to be nice
  3. Believing that a payment reminder (purring) alone always interrupts limitation
  4. Confusing the deadline for complaining about a defect (reklamasjonsfrist) with the limitation period (foreldelsesfrist)
  5. Forgetting to check whether another law has its own time limit

What should you do?

First, find out what kind of claim you have. Is it a loan, an invoice, a compensation claim, a repayment claim or something else? Write down the date when you could first demand payment or performance. This is often the starting point for the time limit under § 3.

Then send the claim in writing. Use email, a letter or another channel you can document. State the amount, why you are claiming it, and a specific payment deadline. If the matter is approaching limitation, you must not settle for nagging. You must then consider an interruption of the limitation period (fristavbrudd) under the rules later in the Act.

Frequently asked questions

Does the Limitation Act apply to private loans?
Yes. A private loan is a monetary claim. If no special rule applies, you must look at the main rule of 3 years and the rules on when the time limit starts.
Can an old invoice become too old?
Yes. An invoice can become time-barred. This means that the person demanding payment can lose the right to get the money if the claim is not followed up correctly in time.
Does the Act only apply to debt collection?
No. Debt collection is just one way of following up a claim. The Limitation Act applies to the claim itself, whether or not it has been sent to debt collection.
What does "fordring" mean?
"Fordring" means claim. If someone owes you money, you have a claim against them. If you owe someone money, they have a claim against you.
Does the Limitation Act apply if another law has its own time limit?
As a starting point no, not fully. § 1 says that the Limitation Act applies unless otherwise provided by law. If another law has a special rule, that special rule must be applied first.
Related sections
All sections of the Limitation Act →
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