LPL4801 ASSIGNMENT 1 SOLUTION S 2022
QUESTION (a)
First, it must be determined whether the agreement is a credit agreement which is governed by
the NCA. The definition for a credit agreement and its subcategories are found in section 8 of
the NCA. In terms of subsection, an agreement is a credit agreement if it is a credit facility,
credit guarantee or credit transaction.
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. In terms of section 8(4) of the NCA there are
a number of different types of credit transactions, but from the facts this constitutes “an
instalment agreement”
QUESTION (a)
First, it must be determined whether the agreement is a credit agreement which is governed by
the NCA. The definition for a credit agreement and its subcategories are found in section 8 of
the NCA. In terms of subsection, an agreement is a credit agreement if it is a credit facility,
credit guarantee or credit transaction.
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. In terms of section 8(4) of the NCA there are
a number of different types of credit transactions, but from the facts this constitutes “an
instalment agreement”
