TASK FOUR

$10$

$4.$ Sarah lends R$5,000$ to her friend, Tom, in January $2020.$ They agree that Tom will repay the debt in full by December $2020.$ However, December $2020$ passes without any repayment from Tom. Sarah, busy with other matters, does not pursue the debt immediately. In January $2024,$ Sarah realizes that Tom has never repaid the loan and demands repayment. Tom argues that it is too late for Sarah to claim the debt because it has prescribed.

$($a$)$ Explain the concept of "prescription" in the context of South African law. $(3$ marks$)$

$($b$)$ Has Sarah's claim against Tom prescribed? Explain your answer with reference to the relevant prescription period and any factors that might affect it$.(7$ marks$)$