Section 19 of LA : Section 19: Effect Of Payment On Account Of Debt Or Of Interest On Legacy

Explanation using Example

Imagine John borrowed $10,000 from Mary, with the agreement that he would repay it within 5 years. Four years and 11 months into the agreement, John realizes the limitation period to claim the debt is nearly over and he has not yet repaid any of the money. To avoid legal action and reset the limitation period, John pays $500 to Mary and ensures that the payment is documented with a receipt signed by him. As a result, a new limitation period begins from the date of this $500 payment, giving him more time to repay the entire debt.