oa De Rebus - Promise to pay - prolonging prescription : candidate attorney feature
|Article Title||Promise to pay - prolonging prescription : candidate attorney feature|
|© Publisher:||Law Society of South Africa|
|Publication Date||Jul 2013|
|Pages||42 - 43|
There is a significant intersection between the Bills of Exchange Act 34 of 1964, the Prescription Act 68 of 1968 and acknowledgments of debt.
Many attorneys regularly draft and use acknowledgments of debt in their practices. A claim arising from an acknowledgment of debt will prescribe in three years as it is an ordinary debt in terms of the Prescription Act.
However, it may be possible to draft an acknowledgment of debt in such a way that it becomes a negotiable instrument, thus extending the period of prescription.
This may be the difference between a client being able to collect on a debt or not.
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