Action Mart purchased a large shipment of items from Excel Distributors on April 1, 2020. The contract stipulated that payment be made in equal monthly installments over a 12-month period, with payment due on the 1^st day of each month. Action made the first 4 payments on time with no problem. The company then defaulted in the following two months when their business slowed down. On November 1, 2020 payment resumed, but because Action was still having financial difficulties, only a partial payment was made. Another partial payment was made (late) on December 15, 2020. Since then no further payments have been made. Action Mart now indicates they were dissatisfied with the products and will not be making any further payments.

Limitation Act: The general rule is that most lawsuits must be commenced within two years of discovering the claim and 10 years from the date when the claim arose.

Exception: Part payment of debt or acknowledgment of debt( prior to the expiration of the limitation period) causes the period to restart

 

Q: According to the limitation Act and exception of the limitation act, Excel has until December 15, 2022 to commence an action for breach of contract ? Why