What is meant by 'accrual of a claim'?

The concept of 'accrual of a claim' refers to the moment an event occurs that establishes the legal basis for a claim to be made. This is often linked to the occurrence of a specific event that triggers obligations or liabilities for one or both parties involved in a contract. Essentially, it is the point in time when the claimant is able to assert their right to a claim under the terms of the contract due to a breach or other issue that creates liability.

Understanding this concept is crucial in the context of contracting because it helps delineate when claims should be filed and what timelines or statutes of limitations may apply thereafter. This is why knowing the event that fixes liability is fundamental for parties to take appropriate action in asserting their rights.