JOE BORROWS R 10 000 FROM NICK. THEY BOTH AGREE THAT NICK WILL REPAY THE LOAN IN FIVE EQUAL INSTALMENTS OVER THE FOLLOWING FIVE MONTHS. AT THE END OF FIRST MONTH JOE PAYS R 2000 AND REFUSES TO PAY ANY OF THE OTHER INSTALMENTS.
INDICATE THE PERIOD OF PRESCRIPTION IN RESPECT OF THIS DEBT.
Answers
Answer:
as he is phakir..................
Period of Prescription should be 3 years.
Explanation:
There is a slight typing mistake in the question.
In the second line,Nick should be replaced by Joe since Joe was the one who took the loan.
Now,coming back to the explanation of the answer.
Let us first understand what's the meaning of "Period of Prescription".
As per the provisions of Prescription Act 68, 1969,
Prescription is maximum amount of period set by statute or the appropriate legal authority,within which a legal action can be brought or a right can be enforced.The legal authority may not allow the Individual or legal entity from filing a legal action in its defense for committing breach of contract.
Prescription period is also called as "Limitation period".
In the following case,the prescription period should be 3 years as there was no written contract between Joe and Nick for the payment of the debt,they had agreed on their statements only orally.
Therefore,as per the provisions of this Act,the Prescription period should be 3 years.
It would have been 6 years if both of them had entered into a written contract or agreement.