Waiting to commence with legal action? Your claim might be nearing prescription.

Written by Duduzile Zulu

29 April 2022

What is prescription?

Prescription is a legal principle in which a debtor’s liability to pay an outstanding debt expires after passing prescribed time periods. Prescription also applies to legal claims. The prescription period is a time limit after which the opportunity to claim or the obligation to pay money expires.

In terms of a claim, the prescription period is the amount of time you have in order to submit a claim after the incident in question. If you don’t claim within this prescription period, you lose the opportunity to do so.

When does prescription start running?

The prescription period begins immediately after an incident occurs or debt is incurred.

How long is the applicable prescription period?

The length of a prescription period depends on the type of claim or debt. In some circumstances, prescription periods for claims can be extended.

In most general cases, claims prescribe within 3 years from the date on which the cause of action arose.

In terms of section 11 of the Prescription Act 68 1969, the prescription periods are:

  • 30 years for debts secured by mortgage bond, judgment debts, etc.;
  • 15 years for certain debts owed to the State;
  • 6 years for debts arising from a bill of exchange, notarial contract, etc.; and
  • 3 years in other cases “save where an Act of Parliament provides otherwise“.

What interrupts or delays a prescription period?

According to the Prescription Act, prescription is interrupted by the debtor’s express or tacit acknowledgement of liability. When the running of prescription is interrupted, prescription shall commence running a fresh from the day on which the interruption takes place or, if at the time of the interruption or at any time thereafter, the parties postpone the due date of the debt from the date upon which the debt again becomes due. Book a consultation with one of our debt collection attorneys that specialise in prescription law in South Africa.

DISCLAIMER: Information provided in this article does not, and is not intended to constitute legal advice. READ MORE