,TLI4801 MAY/ JUNE EXAMINATION - DUE DATE 26 MAY 2026
QUESTION 1: CIVIL PRACTICE
1.1(a)
(i) Advice regarding whether a mere letter would be sufficient
A mere informal letter by itself is not always sufficient to resolve a commercial debt dispute,
although a formal letter of demand is often an effective first procedural step. A letter of
demand serves several purposes. First, it formally notifies the debtor of the amount
outstanding and grants an opportunity to remedy the breach before legal proceedings are
instituted. Secondly, it demonstrates good faith and may encourage settlement without
litigation. Thirdly, it may be used as evidence that reasonable attempts were made to avoid
unnecessary litigation and costs.1
In the present matter, Maneq (Pty) Ltd should not rely on a simple informal letter alone
because previous verbal assurances by Mr Zee Man have not resulted in payment. A formal
written letter of demand drafted by legal representatives would be more effective because it
creates a documented record and warns Zema Plastics of impending legal action should
payment not be made within a stipulated period.
(ii) Letter of demand
The following letter may be delivered:
Letter of Demand: Outstanding Instalment Payment
Date: 15 August 2025
1
Cilliers AC et al Herbstein and Van Winsen: The Civil Practice of the High Courts of South Africa 5 ed (2009) 558.
, To: The Directors
Zema Plastics (Pty) Ltd
Pretoria North
Gauteng
RE: DEMAND FOR PAYMENT OF OUTSTANDING DEBT
We act on behalf of Maneq (Pty) Ltd.
On or about 1 August 2025, our client concluded a purchase and sale agreement with your
company in terms of which two heavy-duty plastic manufacturing machines were sold and
delivered to your company for a total purchase price of R10 000 000.00 payable in six equal
monthly instalments. Our instructions are that despite delivery and use of the machines by
your company, the final instalment in the amount of R1 666 666.67 remains unpaid and
due.Take notice that you are hereby required to settle the outstanding amount together with
any applicable interest within seven (7) days from receipt of this letter.Should payment not
be received within the above period, our client shall proceed with legal action against your
company without further notice and shall seek an order for payment together with interest
and costs on an attorney and client scale where applicable.
Yours faithfully
ABC Attorneys
Attorneys for Maneq (Pty) Ltd
1.1(b)
Maneq (Pty) Ltd should institute action proceedings rather than application proceedings.
Action proceedings are appropriate where disputes involve the recovery of a debt arising
from a contractual obligation. Action proceedings commence through a summons
accompanied by particulars of claim.2 Application proceedings are generally used where
2
Uniform Rules of Court Rule 17.
QUESTION 1: CIVIL PRACTICE
1.1(a)
(i) Advice regarding whether a mere letter would be sufficient
A mere informal letter by itself is not always sufficient to resolve a commercial debt dispute,
although a formal letter of demand is often an effective first procedural step. A letter of
demand serves several purposes. First, it formally notifies the debtor of the amount
outstanding and grants an opportunity to remedy the breach before legal proceedings are
instituted. Secondly, it demonstrates good faith and may encourage settlement without
litigation. Thirdly, it may be used as evidence that reasonable attempts were made to avoid
unnecessary litigation and costs.1
In the present matter, Maneq (Pty) Ltd should not rely on a simple informal letter alone
because previous verbal assurances by Mr Zee Man have not resulted in payment. A formal
written letter of demand drafted by legal representatives would be more effective because it
creates a documented record and warns Zema Plastics of impending legal action should
payment not be made within a stipulated period.
(ii) Letter of demand
The following letter may be delivered:
Letter of Demand: Outstanding Instalment Payment
Date: 15 August 2025
1
Cilliers AC et al Herbstein and Van Winsen: The Civil Practice of the High Courts of South Africa 5 ed (2009) 558.
, To: The Directors
Zema Plastics (Pty) Ltd
Pretoria North
Gauteng
RE: DEMAND FOR PAYMENT OF OUTSTANDING DEBT
We act on behalf of Maneq (Pty) Ltd.
On or about 1 August 2025, our client concluded a purchase and sale agreement with your
company in terms of which two heavy-duty plastic manufacturing machines were sold and
delivered to your company for a total purchase price of R10 000 000.00 payable in six equal
monthly instalments. Our instructions are that despite delivery and use of the machines by
your company, the final instalment in the amount of R1 666 666.67 remains unpaid and
due.Take notice that you are hereby required to settle the outstanding amount together with
any applicable interest within seven (7) days from receipt of this letter.Should payment not
be received within the above period, our client shall proceed with legal action against your
company without further notice and shall seek an order for payment together with interest
and costs on an attorney and client scale where applicable.
Yours faithfully
ABC Attorneys
Attorneys for Maneq (Pty) Ltd
1.1(b)
Maneq (Pty) Ltd should institute action proceedings rather than application proceedings.
Action proceedings are appropriate where disputes involve the recovery of a debt arising
from a contractual obligation. Action proceedings commence through a summons
accompanied by particulars of claim.2 Application proceedings are generally used where
2
Uniform Rules of Court Rule 17.
