TLI4801 Assignment 1
(COMPLETE ANSWERS)
Semester 1 2025 (835330) -
DUE 14 March 2025
For any assistance, contact:
, TLI4801 Assignment 1 (COMPLETE
ANSWERS) Semester 1 2025 (835330) - DUE
14 March 2025
1. You act for ADB Cables (Pty) Ltd, a supplier of high
voltage electricity cables. lcp4801 Brown Electrical (Pty)
Ltd is one of the customers of ADB Cables and the latter
on 01 October 2024 supplied cables to Brown Electrical
on terms requiring payment to be made within 60 days of
delivery. You are approached by ADB Cables with
instructions to recover an amount of R1.2M which is owed
to your client by Brown Cables. You proceed to serve
Brown Electrical with a demand. Upon receipt of the
demand, Brown Electrical, through its sole director and
shareholder, Dennis Brown, informs you that Brown
Electrical acknowledges its debt to ADB Cables and
subsequently enters into an acknowledgement of debt
(AOD). Brown Electrical subsequently fails to abide by the
payment procedure agreed upon in the AOD. (a) Would
you advise ADB Cables to make use of the Provisional
Sentence Procedure to recover the amount owing?
Provide reason(s) for your answer. (6 marks) lml4806
No, I would not advise ADB Cables to make use of the Provisional Sentence Procedure to
recover the R1.2 million owed by Brown Electrical. The reasons are as follows:
1. Provisional Sentence Requires a Liquid Document
o The Provisional Sentence Procedure is a summary judgment process available
when the claim is based on a liquid document—a written, unconditional
acknowledgment of a debt that is due and payable (e.g., a cheque, promissory
note, or a written contract containing an unequivocal promise to pay).
o While Brown Electrical has entered into an Acknowledgment of Debt (AOD),
South African courts do not automatically regard an AOD as a liquid document
unless it is signed, clear, and unconditional regarding the amount due and the
payment terms.
(COMPLETE ANSWERS)
Semester 1 2025 (835330) -
DUE 14 March 2025
For any assistance, contact:
, TLI4801 Assignment 1 (COMPLETE
ANSWERS) Semester 1 2025 (835330) - DUE
14 March 2025
1. You act for ADB Cables (Pty) Ltd, a supplier of high
voltage electricity cables. lcp4801 Brown Electrical (Pty)
Ltd is one of the customers of ADB Cables and the latter
on 01 October 2024 supplied cables to Brown Electrical
on terms requiring payment to be made within 60 days of
delivery. You are approached by ADB Cables with
instructions to recover an amount of R1.2M which is owed
to your client by Brown Cables. You proceed to serve
Brown Electrical with a demand. Upon receipt of the
demand, Brown Electrical, through its sole director and
shareholder, Dennis Brown, informs you that Brown
Electrical acknowledges its debt to ADB Cables and
subsequently enters into an acknowledgement of debt
(AOD). Brown Electrical subsequently fails to abide by the
payment procedure agreed upon in the AOD. (a) Would
you advise ADB Cables to make use of the Provisional
Sentence Procedure to recover the amount owing?
Provide reason(s) for your answer. (6 marks) lml4806
No, I would not advise ADB Cables to make use of the Provisional Sentence Procedure to
recover the R1.2 million owed by Brown Electrical. The reasons are as follows:
1. Provisional Sentence Requires a Liquid Document
o The Provisional Sentence Procedure is a summary judgment process available
when the claim is based on a liquid document—a written, unconditional
acknowledgment of a debt that is due and payable (e.g., a cheque, promissory
note, or a written contract containing an unequivocal promise to pay).
o While Brown Electrical has entered into an Acknowledgment of Debt (AOD),
South African courts do not automatically regard an AOD as a liquid document
unless it is signed, clear, and unconditional regarding the amount due and the
payment terms.
