LEGAL PRINCIPLE: CONTRACT LAW — Breach of Contract — Accrual of Cause of Action — Time of Breach
PRINCIPLE STATEMENT
In actions for breach of contract, the cause of action accrues for the Plaintiff's benefit from the time the breach is committed and not when the damage is suffered. Thus the period of limitation begins to run from the date the cause of action accrues.
RATIO DECIDENDI (SOURCE)
Per Onu, JSC Iweka v. S.C.O.A. (Nigeria) Limited (2000) NLC-2311992(SC) at p. 14; Paras. B–C.
"In actions for breach of contract, the cause of action accrues for the Plaintiff's benefit from the time the breach is committed and not when the damage is suffered. Thus the period of limitation begins to run from the date the cause of action accrues."
EXPLANATION / SCOPE
In breach of contract claims, the cause of action arises immediately upon the breach, not when the claimant subsequently suffers damage. The limitation period therefore commences from the date of breach, regardless of when loss becomes ascertainable. This rule prevents claimants from indefinitely delaying action by awaiting the full extent of damage. Exceptions exist for latent damage or continuing breaches, but the general principle is that time runs from the breach itself. Claimants must act promptly once a contractual obligation is violated or risk being statute-barred.