LPL4801
Assignment 1 Semester 2 2024
Detailed Solutions, References & Explanations
Unique number: 526694
Due Date: 26 August 2024
QUESTION 1
a.
Credit Agreement under the NCA
According to Section 8 of the NCA, a credit agreement can be categorized as a credit facility,
credit transaction, or credit guarantee. In this case, the agreement in question appears to be a
credit facility.
Definition and Elements of a Credit Facility
As per Section 8(3) of the NCA, a credit facility is defined by three primary elements:
1. Supply of Goods or Services: The credit provider undertakes to supply goods or
services, or to pay amounts to the consumer, on behalf of the consumer or at the
consumer's direction.
2. Deferred Payment: The credit provider defers the consumer’s obligation to pay any part
of the cost of the goods or services, or to repay any amount advanced, or bills the
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