Question

The period of limitation for an action by a principal against his agent for movable property received by the latter and not accounted for is

• A. 12 years
• B. 3 years
• C. 5 years
• D. No limitation

Hint:

The standard period of limitation for most suits based on contract or torts, and for accounts, is three years. When in doubt and if it's not related to immovable property or mortgages (which often have a 12-year period), three years is a common answer.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
The question asks for the specific time limit (period of limitation) within which a principal must file a lawsuit against their agent to recover movable property that the agent has received but has not given an account for. Such time limits are prescribed by the Limitation Act, 1963.
Step 2: Detailed Explanation:
The Schedule to the Limitation Act, 1963, provides the periods of limitation for various kinds of suits. The relevant entry for this scenario is Article 3 of the First Division (Suits relating to Accounts).
Article 3 reads as follows:
Description of suit: By a principal against his agent for movable property received by the latter and not accounted for.
Period of limitation: Three years.
Time from which period begins to run: When the account is, during the continuance of the agency, demanded and refused or, where no such demand is made, when the agency terminates.
Therefore, the law explicitly provides a limitation period of 3 years for such an action.
Step 3: Final Answer:
According to Article 3 of the Schedule to the Limitation Act, 1963, the period of limitation for a suit by a principal against an agent for movable property not accounted for is three years. Therefore, option (B) is correct.