Article 2: (Art. 88 of the Act of 1908):
The period of limitation for a suit against a factor for an account is three years and the period of limitation begins to run is the date when the account is, during the continuance of the agency, demanded and refused or where no such demand is made, when the agency terminated.
ADVERTISEMENTS:
A factor is an agent who is entrusted with possession of goods for sale on account of his principal.
In Babu Ram v. Ram Dayal, (12 All. 541), it has been held that limitation does not begin to run when any portion of the goods is sold, but only from the date of demand made by the principal during the time the price remains unpaid by the agent. On the failure of the purchaser to pay off the encumbrance as per covenant in the sale deed, a suit on the contractor of indemnity is governed by Art. 2 of the Limitation Act, 1963.