Question

Choose the correct answer from the alternatives given.
In case the goods are sold on credit, a debt Is discharged by lapse of time if debt is not recovered within:

• A. 3 years from the date of grant of credit
• B. 3 years from the date of expiry of credit period
• C. 12 years from the date of expiry of credit period
• D. none of these

Answer 1

The correct option is B 3 years from the date of expiry of credit period

Option B .

The Limitation Act, 1963 signifies a predefined period for execution of a contract. In the event that the promisor neglects to perform and the promisee neglects to make a move inside this predefined period, at that point the last can't look for cure through law. It releases the contract because of the lapse of time.