What it means
A limitation period is the legal deadline within which a claim must be brought to court. In Australia, limitation periods are set by each state and territory's legislation, and they vary by claim type. For contract and many civil claims, the period is commonly six years from when the cause of action arose (slightly different in some jurisdictions). If you miss the deadline, your claim is usually 'statute-barred' and the court will not hear it. Some periods can be extended in special cases, so early advice is important.
How it's used
Because the breach happened more than six years ago, the business discovered its claim was outside the limitation period and could no longer be pursued.