Improper recognition of debt as the event interrupting the run of the statute of limitations

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Publication
07.02.2019
Improper recognition of debt as the event interrupting the run of the statute of limitations

In legal writings and case law it is universally accepted that the debtor’s acknowledging the fact that it is obligated to render performance interrupts the run of the statute of limitations, because such debtor’s declaration constitutes a so-called improper recognition of debt.

The author disagrees with the view that for an improper recognition of debt to come into existence, it is sufficient that the debtor declare itself to be liable to perform. According to the author, for the interruption of the statute of limitations it is necessary that the creditor prove that it could reasonably expect the debtor to perform voluntarily. However, the prevailing view does not require such a proof; the conclusion on the reasonableness of the creditor’s expectation regarding the debtor’s voluntary performance is drawn solely from the fact that the obligated party made a declaration of fact pertaining to the existence of debt.