Legal analysis: Contract disputes can still be prosecuted after 5 years. The limitation of action for the parties to request the people's court to protect their civil rights is three years, and the contract dispute has occurred for five years, which exceeds the limitation of action. The parties have lost the right to win the case because of the limitation of action, but they can still pursue the case and the people's court will accept it. If the other party raises a prescription defense, the people's court shall make a judgment and dismiss the prosecution of the party concerned. Generally speaking, contract disputes can still be brought after the limitation of action. If the other party fails to raise a prescription defense, the people's court will continue to accept it. If a prescription defense is filed, the people's court will directly dismiss the lawsuit.

Legal basis: Article 188 of the Civil Law of People's Republic of China (PRC) requests the people's court to protect civil rights, and the limitation of action is three years. Where there are other provisions in the law, those provisions shall prevail.

The limitation period of action shall be counted from the date when the creditor knows or should know that the right is damaged and the debtor knows it. Where there are other provisions in the law, those provisions shall prevail. However, the people's court shall not protect the rights that have been damaged for more than 20 years. Under special circumstances, the people's court may decide to extend the time according to the application of the obligee.