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LIMITATION OF ACTIONS ACT 1974 - SECT 38
Postponement in cases of fraud or mistake
38 Postponement in cases of fraud or mistake
(1) Where in an action for which a period of limitation is prescribed by this
Act— (a) the action is based upon the fraud of the defendant or the
defendant’s agent or of a person through whom he or she claims or his or her
agent; or
(b) the right of action is concealed by the fraud of a person
referred to in paragraph (a) ; or
(c) the action is for relief from the
consequences of mistake;
the period of limitation shall not begin to run until
the plaintiff has discovered the fraud or, as the case may be, mistake or
could with reasonable diligence have discovered it.
(2) Nothing in this
section enables an action to be brought to recover or enforce a charge against
or set aside a transaction affecting property that— (a) in the case of
fraud—has been purchased for valuable consideration by a person who was not
a party to the fraud and did not at the time of the purchase know or have
reason to believe that a fraud had been committed; or
(b) in the case of
mistake—has been purchased for valuable consideration subsequently to the
transaction in which the mistake was made by a person who did not know or have
reason to believe that the mistake had been made.
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