Time Limitation Clause on Liability Litigation

The limitation clauses are clauses which have defensive effect. The purpose of these clauses is to give a defensive means to defendant that should be invoked and the court, if considered it to be effective, reduces defendant's liability. Prescription is a legislative limitation clause by which the defendant is entitled to ask court not to hear the case. Since the prescription is a right for defendant, (s)he can refuse to invoke to it. So, the parties can change the period of prescription by lengthening or shortening it. In prolonging or shortening of prescription, the parties should observe standards of reasonableness. So, they can’t remove the prescription or shorten it below a reasonable time for litigation. When there is no general rule of prescription in a legal system, like Iranian law, the parties can limit their liability as to time by a contractual term. As the limitation clause is valid, the clause which limiting the time should be constituted valid.