Prescription of Claims

You will know that most debts prescribe (become unclaimable) after 3 years, so as a creditor you need to know exactly when it starts running. From that moment on, the clock is ticking… A recent Constitutional Court case highlights one particular instance where prescription kicks in a lot earlier than you might think – namely, in the case of the “on demand” loan. What “on demand” really means Lending money to someone on an “on demand” basis means that the loan need only be repaid to you when you actually “demand” it from the debtor. It’s a common way of…

Most of us know how important it is to sue our debtors well before prescription permanently takes away our right to claim. But what if you did nothing until it was too late because you didn’t even know you had a claim in the first place?  As a recent Constitutional Court illustrates, the answer depends on what the nature of your ignorance in this regard is. A damages claim for unlawful arrest An illiterate resident of a rural area was arrested and detained by police for four or five days. He only became aware that his arrest had been unlawful…

Debts prescribe (become uncollectable) after a specified period of time in accordance with South African law - 3 years for most run-of-the-mill debts; but 30 years for others such as judgment debts, mortgage bond debts, property rates and tax debts. Various other periods apply to specific statutory debts and a few other exceptions – take advice if you need more detail. It’s important to know that the prescription period can be “delayed” in certain cases. In other words, delaying the prescription of a debt.  For example where the debtor is a minor or insane, or under curatorship, or out of…