Multiple choice

A stayed in the hotel of B for one week. He organized a party for his friends on 0.1.11.2014 the bill of which amounted to Rs. 40,000/-. He vacated his room on 05.11.2014 and settled all his bills except the bill of the party. B can sue A for the payment of Rs. 40,000/- within:

  1. 1 year from 01.11.2014

  2. 1 year from 05.11.2014

  3. 3 years from 01.11.2014

  4. 3 years from 05.11.2014

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

Under the Limitation Act, the limitation period for a simple contract (like payment for hotel services) is 3 years from when the cause of action accrues. The cause of action arises when the debt becomes due, which is the date of the party (01.11.2014) when services were rendered, not the date of vacating the room. Therefore, the 3-year period runs from 01.11.2014.