Lending Money Repayable “On Demand”: Beware Prescription!

Lending Money Repayable “On Demand”: Beware Prescription!

Lending Money Repayable “On Demand”: Beware Prescription!KVV Inc Attorneys
Published on: 04/03/2025

"On demand" loans, often used for family or business lending, can be tricky when it comes to prescription (the time limit for claiming debt). A recent Constitutional Court case clarified that unless otherwise agreed, these loans are "due and payable" the moment the money is advanced, not when you demand repayment. This means prescription starts ticking immediately, not years later when you decide to call in the loan. To avoid losing your money, clearly specify in your loan agreement what "on demand" means and when the debt becomes due.

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KVV Inc. Attorneys: Celebrating 10 Years of Excellence in Property Law and Conveyancing.

Fostering Partnerships,

Driving Results.

© KVV Inc. Attorneys 2025.

All Rights Reserved. Privacy Policy | POPIA