Multiple choice

In which of the following cases shall the limitation period not get extended?

  1. Borrower’s agent deposited cash in the account within limitation period.

  2. Borrower acknowledged the liability in his balance sheet within the limitation period.

  3. Borrower acknowledged the liability by signing a letter after the limitation period.

  4. All of the above

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The acknowledgement binds only those persons who have signed it. Thus, if borrower has acknowledged the liability by signing a letter after the limitation period, the limitation period shall not get extended.

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