5-year negative prescription

4Effect of fraud or error on computation of prescriptive period

1

Section 6 (extinction of obligations by prescriptive periods of five years) of the 1973 Act is amended as follows.

2

In subsection (4), for “was induced to refrain from making” substitute “failed to make”.

3

After subsection (4) insert—

4A

For the purposes of subsection (4)(a), it does not matter whether the debtor, or the person acting on the debtor’s behalf, intended the fraud or the words or conduct to cause the creditor to fail to make a relevant claim.