LPL4801 Assignment 1 Semester 1 (269717 ) 2026 Due 18 March 2026

University of South Africa — Universiteit van Suid-Afrika
College of Law — Department of Mercantile Law

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LPL4801

Credit Law

Assignment 1 — National Credit Act 34 of 2005

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Module: LPL4801 — Credit Law

Assignment: Assignment 1

Semester: Semester 1, 2026

Due Date: 18 March 2026

Topic: National Credit Act 34 of 2005 — In-
stalment Sale
Institution: University of South Africa (UNISA)

Department: College of Law

Citation Style: OSCOLA




Submitted in partial fulfilment of the requirements for LPL4801 — University of South Africa

,UNISA | LPL4801 Credit Law Assignment 1 – Semester 1, 2026



Contents

1 Introduction and Facts 3

2 Question (a): Applicability of the NCA to the Agreement 4
2.1 (a) Is the NCA Applicable to This Agreement? . . . . . . . . . . . . . . . . . . . 4
2.1.1 Step 1: Does the NCA Apply at All? . . . . . . . . . . . . . . . . . . . . . 4
2.1.2 Step 2: Is This a Credit Agreement? . . . . . . . . . . . . . . . . . . . . . 4
2.1.3 Step 3: Does the Amount Fall Within the NCA’s Jurisdiction? . . . . . . 5
2.1.4 Step 4: Are Both Parties Acting at Arm’s Length? . . . . . . . . . . . . . 5
2.1.5 Conclusion on Applicability . . . . . . . . . . . . . . . . . . . . . . . . . . 5

3 Question (b): Must S Register as a Credit Provider? 6
3.1 (b) S’s Registration Obligation as a Credit Provider . . . . . . . . . . . . . . . . 6
3.1.1 The Registration Threshold . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3.1.2 Application to S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3.1.3 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

4 Question (c): Is the Stated Interest Rate Permissible? 8
4.1 (c) Whether 15% Per Annum Interest Is Permitted Under the NCA . . . . . . . . 8
4.1.1 Maximum Interest Rate for Instalment Agreements . . . . . . . . . . . . . 8
4.1.2 Application to the Agreement . . . . . . . . . . . . . . . . . . . . . . . . . 8
4.1.3 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

5 Question (d): Remedies Available to P Under the NCA 10
5.1 (d) P’s Remedies Under the NCA . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
5.1.1 Remedy 1: The Cooling-Off Right Under Section 121 . . . . . . . . . . . . 10
5.1.2 Effect of Exercising the Cooling-Off Right . . . . . . . . . . . . . . . . . . 10
5.1.3 Remedy 2: Pre-Agreement Assessment Failure . . . . . . . . . . . . . . . . 11
5.1.4 Remedy 3: Right to Rescind for Non-Compliance with Formal Requirements 11
5.1.5 Summary of P’s Best Remedy . . . . . . . . . . . . . . . . . . . . . . . . . 12
5.1.6 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

6 Question (e): Effect of a Latent Defects Exclusion Clause If the NCA Did Not
Apply 13
6.1 (e) Validity and Effect of an Exclusion Clause for Latent Defects at Common Law 13


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, UNISA | LPL4801 Credit Law Assignment 1 – Semester 1, 2026


6.1.1 The Common Law Duty Regarding Latent Defects . . . . . . . . . . . . . 13
6.1.2 The Voetstoots Clause . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
6.1.3 Important Exception: Fraud or Dolus . . . . . . . . . . . . . . . . . . . . 13
6.1.4 The Consumer Protection Act Parallel (for Context) . . . . . . . . . . . . 14
6.1.5 Effect of the Exclusion Clause on These Facts . . . . . . . . . . . . . . . . 14
6.1.6 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Reference List 16




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