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LU 2 - These notes are very helpful. - Law of Banking and
Payment in South Africa
Methods of Payment Law (Varsity College)
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The amount of payment
To be valid – full amount owing. Instalments are incomplete performance.
The amount is general specified in the contract. No adjustments for
depreciation or appreciation.
In Eden v Pienaar, Cloete J suggested that the creditor is protected from the
effect of inflation as a debt bear interest at the prescribed rate.
The time of payment
Must be made at the time or within the period agreed upon. The debtor has
until the last moment of the stipulated day to pay.
The determine the time of payment, the courts look at the intention of the
parties and their intention must be given effect.
Days: mean calendar days.
After: in describing the period after the stipulated date mean you exclude the
date stipulated.
If the court cannot ascertain what the parties intended, it must adopt the
civilian method of computation. First day is included and last day is excluded.
No agreement as to time or date – payment must be immediate or within a
reasonable time.
Common law – payment may be done early if the time was for the debtor’s
benefit. If the time was for the benefit of the creditor – creditor may refuse
early payment.
Section 125 of the National Credit Act – debtor has right to make early payment in
certain debts
Place of payment
Place agreed upon.
Where place is not tacit or implied – must be determined by reference to
statute, trade usage or common law applicable to that type of contract.
Section 19 of the Consumer Protection Act – unless otherwise stated, place
for delivery of goods is the supplier’s place of business.
If sources of law are of no assistance and time of payment is fixed – the
debtor must seek the creditor and pay him.
If the time is not fixed, the creditor must go to the debtor and demand
payment.
Downloaded by Linc Kay ()
LU 2 - These notes are very helpful. - Law of Banking and
Payment in South Africa
Methods of Payment Law (Varsity College)
StuDocu is not sponsored or endorsed by any college or university
Downloaded by Linc Kay ()
, lOMoARcPSD|14363929
The amount of payment
To be valid – full amount owing. Instalments are incomplete performance.
The amount is general specified in the contract. No adjustments for
depreciation or appreciation.
In Eden v Pienaar, Cloete J suggested that the creditor is protected from the
effect of inflation as a debt bear interest at the prescribed rate.
The time of payment
Must be made at the time or within the period agreed upon. The debtor has
until the last moment of the stipulated day to pay.
The determine the time of payment, the courts look at the intention of the
parties and their intention must be given effect.
Days: mean calendar days.
After: in describing the period after the stipulated date mean you exclude the
date stipulated.
If the court cannot ascertain what the parties intended, it must adopt the
civilian method of computation. First day is included and last day is excluded.
No agreement as to time or date – payment must be immediate or within a
reasonable time.
Common law – payment may be done early if the time was for the debtor’s
benefit. If the time was for the benefit of the creditor – creditor may refuse
early payment.
Section 125 of the National Credit Act – debtor has right to make early payment in
certain debts
Place of payment
Place agreed upon.
Where place is not tacit or implied – must be determined by reference to
statute, trade usage or common law applicable to that type of contract.
Section 19 of the Consumer Protection Act – unless otherwise stated, place
for delivery of goods is the supplier’s place of business.
If sources of law are of no assistance and time of payment is fixed – the
debtor must seek the creditor and pay him.
If the time is not fixed, the creditor must go to the debtor and demand
payment.
Downloaded by Linc Kay ()
