LPL4801 ASSIGNMENT 1 DUE 15 MARCH 2023

NAME


STUDENT NUMBER


MODULE CODE LPL4801




QUESTION
(a)
In terms of section 8(3) of the NCA the elements of credit facility are the following:

 The credit provider undertakes to supply goods or services or to pay amounts
to the consumer, on behalf of the consumer or at the direction of the
consumer.
 The credit provider defers the consumer’s obligation to pay any part of the
cost of the goods or services or to repay any amount advanced or bill the
consumer periodically for any part of the goods, services or advance.
 A charge, fee or interest is payable to the credit provider in respect of the
amounts deferred or billed.

All three requirements for a credit facility are met. Firstly, Prestige bank supplies
goods in the form of a vehicle to Thandi. Secondly, Thandi has been given a credit of
R250 000 payable in monthly instalments and Lastly provision is made for the
payment of fees and interest.

Accordingly, this agreement is a credit facility under section 8(3) of the NCA.

(b)

There are three possible remedies, namely the cooling-off right in terms of section
121, the right of termination in terms of section 122 and the remedies based on
reckless credit in terms of sections 80 to 83 of the NCA.

i. Cooling-off right in terms of section 12