A debt hasn't been repaid, a contract hasn't been performed, but time keeps passing with a "we'll sort it out later"? The law sets a specific time limit for this — the limitation period. In this article we explain in plain language the limitation periods under the Civil Code, how the court applies them, and why it matters to conclude a contract in the right form.
What is a limitation period and why does it matter?
A limitation period is the time within which a person whose right has been violated can have their claim protected through the courts. If the period has expired and the other party files an application to that effect, the court may reject the claim. That is why it pays not to delay a claim for too long and to gather documents on time.
How many years? The 10, 6 and 3-year rule
The Civil Code sets the main periods as follows (Civil Code, Articles 373.1–373.3):
| Type of claim | Limitation period |
|---|---|
| General limitation period | 10 years |
| Contract claims relating to immovable property | 6 years |
| Contract claims | 3 years |
| Periodically performed obligations | 3 years |
Does the court apply the limitation period on its own?
No. The court does not apply the limitation period on its own initiative — only on the application of a party to the dispute, made before the court issues its decision (Civil Code, Article 375.2). In other words, if the period has expired, the other party must raise it.
Form of the contract: oral, written, notarised
The form of the contract also matters for proving your claim:
- Transactions are concluded orally or in writing (simple or notarised) (Civil Code, Article 329.2).
- If the Code does not require a special form for a particular type of contract, the contract may be concluded in any form (Civil Code, Article 406.1).
- Failure to comply with the form required by law may render the transaction invalid (Civil Code, Article 329.1).
In practice, a written contract both sets out the terms clearly and serves as evidence in a dispute.
About contractual penalties (fines, penalty interest)
A contractual penalty is a sum of money paid when an obligation is not performed or is performed late. When claiming a penalty, the creditor is not required to prove that they suffered damage (Civil Code, Article 462.1). However, the penalty agreement must be in writing — otherwise it is invalid (Civil Code, Article 463).
Summary
- The general limitation period is 10 years.
- Contract claims: 3 years; contract claims relating to immovable property: 6 years.
- The court applies the limitation period only on a party's application.
- Failure to comply with the form required by law may render a transaction invalid.
- A penalty agreement must be in writing.
This information is general in nature and does not constitute legal advice. If you have a question about your situation, message us on WhatsApp: +994 77 739 10 12
📚 Sources
🌐 The original article is in Azerbaijani; the official sources are available in Azerbaijani.
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