In contract law, I've heard of "limitation of action". What is this and when is it enforceable? To my understanding, it's capping a time limit as to when a party to the contract can initiate litigation. There's got to be some limits, and I was hoping if someone could give concrete examples? I'm assuming the time limit can't be arbitrarily small such as "no legal proceedings will be allowed after 24 hours of the services being rendered".
I'm also assuming this doesn't cover everything, for example if someone sold a buyer a complete counterfeit (e.g. a fake Rolex watch) would the buyer really not be able to do anything about it given such a clause? What if some other term of the contract was violated but it wasn't found out until after the allowed time?
Here are some examples, but I'm currently living in Canada and most interested in our laws.