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LPL4801
Law of Sale and Lease
ASSIGNMENT 1 MEMO
SEMESTER 2 – 2023
UNIQUE NUMBER: - 571441
DUE DATE: - 25TH AUGUST 2023
Includes Footnotes and/or Bibliography*
QUESTION 1
Patricia concludes a written agreement for the purchase of a free-standing Jacuzzi from Luxury Pools (Pty) Ltd on 1
June at her home. The purchase price of the Jacuzzi is R52,000 which is payable in twelve equal monthly instalments.
The agreement also makes provision for Patricia to pay interest at 18% per annum to Luxury Pools (Pty) Ltd in respect
of the deferred purchase price and that ownership of the Jacuzzi shall be retained by Luxury Pools (Pty) Ltd until Patricia
satisfies all her financial obligations under the agreement. The Jacuzzi is delivered to Patricia on 2 June. Patricia
approaches you for legal advice on 10 June. She explains that although she can afford the Jacuzzi she has changed
her mind and no longer wishes to continue with the agreement. She also informs you that she paid the first instalment
on 2 June and would like to claim back this instalment. (a) Advise Patricia on whether the National Credit Act (“the
NCA”) is applicable to the agreement. (6)
QUESTION (a) ANSWER
First, it must be determined whether the agreement is a credit agreement which is governed by the NCA. (1)
The definition for a credit agreement and its subcategories are found in section 8 of the NCA. In terms of
subsection (1), an agreement is a credit agreement if it is a credit facility, credit guarantee or credit
transaction (see Study Guide 3, study unit 4, paragraph 4.2). (1) From reading the definitions, the agreement
in the set of facts is clearly not a credit facility or a credit guarantee, but rather a credit transaction. (1)
ANSWERS CONTINUE….
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