Law Society of Ontario (LSO) Paralegal Practice Exam 2025 - Free Paralegal Practice Questions and Study Guide

The term "statute of limitations" refers to the legal time limit within which a party must initiate a lawsuit after a cause of action arises. This time limit is established by statutory law and varies depending on the type of claim and jurisdiction. The primary purpose of the statute of limitations is to ensure that legal claims are brought forward in a timely manner, which helps preserve the integrity of evidence and facilitates the fair resolution of disputes.

For instance, in personal injury cases, there is usually a specific number of years from the date of the injury within which a plaintiff must file their claim. If they fail to do so within that timeframe, they are generally barred from pursuing the case through the courts, even if the claim may have merit. This promotes legal certainty and helps to avoid the indefinite threat of litigation hanging over potential defendants.

While the other choices relate to different legal concepts, they do not accurately capture the essence of the statute of limitations. For example, the maximum time allowed to file an appeal (first option) is governed by a separate legal framework, while the validity of a contract (third option) and the period for resolving claims in small claims court (fourth option) also involve different legal principles and timelines unrelated to the overarching concept of