Other Topics Flashcards
What does prescription mean
Prescription is a rule of law that is designed to bring finality to disputes. It’s regulated by the Prescription Act 68 of 1969
What are the consequences of prescription?
The debtor will naturally remain liable to the creditor for a debt; but creditor may not institute legal action against the debtor for a debt
A client instructs you to issue summons on a claim that has clearly prescribed. What do you advise the client and what is your own position?
it would only be proper to issue summons provided that the client has been fully informed of the risks of an adverse order for costs if the defendant raises prescription by way of a special plea. Any payment may be received may however be received and judgment can be taken by default.
When is prescription delayed?
According to Section 13(1) of the Act prescription will be delayed when:
the creditor is a minor, insane or a person under curatorship;
the debtor is at that time outside the Republic;
the creditor and debtor are married to each other;
the creditor and debtor partners and the debt arose out of the partnership relationship;
the creditor is a juristic person and the debtor is a member of the governing body of such juristic person;
the debt is the object of a dispute in arbitration;
When is prescription interrupted?
Prescription will be interrupted by the debtor’s express or tacit acknowledgment of his or her liability.
