§ 24. When a claim is time-barred, you lose the right to payment

§ 24 is the actual consequence rule in the Limitation Act. It states what happens when the time limit has actually expired. The answer is strict: the person who holds the claim loses the right to performance.

Performance means that the debtor does what the claim requires. In most cases, this means payment. If someone owes you NOK 30,000, performance is that they pay NOK 30,000. If the claim concerns a different performance owed (ytelse), performance can be delivering something, doing something or handing something over.

When the claim is time-barred, you can no longer force performance. You may still believe you were right. You may still have documentation showing that the claim originally existed. You may still feel that it is unfair. But if the claim is time-barred, you have lost the right to have it performed.

This is why limitation (foreldelse) is so important. It is not just a technical time limit. It is a rule that can decide whether you get your money or not. A claim can be correct, documented and morally reasonable, but still lost because the limitation period was not interrupted in time.

The second paragraph says that when the claim (fordring) itself becomes time-barred, interest, dividends and similar additional performance owed go with it. If the main claim lapses, you cannot still claim interest on it. Nor can you claim other additions based on the main claim. The main claim and the additions are linked.

This means you cannot rescue the interest if the claim itself is time-barred. If someone owed you NOK 50,000 plus late-payment interest, and the claim for NOK 50,000 is time-barred, the interest claim also lapses under § 24 second paragraph.

Does limitation mean the debt disappears?

In plain terms: yes, for practical purposes the creditor (kreditor) loses the right to demand payment. The law says that the creditor (fordringshaver) loses the right to performance. This means that the debtor can refuse to pay if the claim is time-barred.

But it is useful to understand the nuance. Limitation does not necessarily mean that history is erased. It may still be true that the money was borrowed. It may still be true that the invoice (faktura) was sent. There may still be papers showing the claim. But the right to enforce payment is lost.

That is why the debtor should speak up if the claim is time-barred. In practice, limitation often has to be invoked. Invoking means stating clearly that you are using limitation as the reason for refusing payment. If you simply pay without saying anything, it may have other consequences. Under the Limitation Act there are also rules on set-off (motregning) and security that can make the picture more complex.

For the person demanding money, § 24 means that keeping track of time limits is absolutely crucial. Being right is not enough. You also have to watch the clock. If you wait too long, you may lose everything.

For the person receiving a claim, § 24 means that old claims should be checked carefully. Do not automatically pay an old invoice without looking at limitation. Ask when the claim fell due. Ask whether the limitation period has been interrupted. Ask whether there is a judgment (dom), an acknowledgement of the claim (erkjennelse), an attachment (utlegg) or another event that has given a new time limit.

What happens to interest when the claim is time-barred?

As a general rule, interest falls together with the main claim. This is what the second paragraph says. If the claim itself is time-barred, the limitation also covers interest, dividends and similar additional performance owed.

This is important in debt collection (inkasso) cases. An old claim may have grown a lot because of interest and costs. If the main claim is time-barred, the creditor cannot simply say that the interest is still alive. Interest depends on the main claim existing. When the main claim lapses through limitation, the interest lapses with it.

But there are also situations where interest has its own time limits. For example, interest falling due later may follow its own rules under § 21. This means you must separate two questions. First: is the main claim time-barred? If yes, the interest usually lapses with the main claim. If no, you must check whether certain interest claims nevertheless have their own time limits.

In practice, you should ask for a breakdown. If someone claims NOK 85,000 and says that NOK 40,000 is the main claim and NOK 45,000 is interest and costs, you should ask for an overview. When did the main claim arise? When did the interest fall due? What is the interruption of the limitation period (fristavbrudd)? Without such an overview, it is difficult to check for limitation.

What happens if you make a mistake?

If you are the creditor and let the time limit expire, you can lose the entire claim. This also applies to interest and additions. You may have spent time on payment reminders (purringer), phone calls and debt collection, but still have no right to payment if you did not interrupt the limitation period correctly.

If you are the debtor and pay a time-barred claim without checking, you may in practice have paid money you could have refused to pay. It can be difficult to get the money back afterwards, especially if the payment appears voluntary.

If you are unsure whether a claim is time-barred, you must look at the whole timeline. When did the claim arise? When did it fall due? Has the debtor acknowledged it? Has the creditor sent a complaint to the Conciliation Board (forliksklage)? Is there a judgment? Has there been an attachment? Has the claim been filed in a bankruptcy estate (konkursbo)? The answer under § 24 comes only after these questions.

If you have a claim, set up a system for tracking time limits. Do not wait until the time limit has almost run out. Ask for a written acknowledgement of the claim under § 14 or take legal action under § 15 if the debtor does not pay.

If you receive an old claim, ask for documentation. Write: “I request documentation of the basis of the claim, the due date (forfallsdato) and any interruptions of the limitation period.” Do not accept just a total amount.

If the claim is time-barred, reply in writing and clearly. Write that you dispute the claim because it is time-barred, and that you do not acknowledge any obligation to pay.