LPL4801 Assignment 1 Semester 1 2024 Detailed Solutions, References & Bibliography Unique number: 569476 (Due Date: 15 March 2024 @12:00 ) 🌟🌟🌟🌟🌟

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LPL4801 Assignment 1 Semester 1 2024 Detailed Solutions, References & Bibliography Unique number: 569476    (Due Date: 15 March 2024 @12:00 ) 

LPL4801 Assignment 01 Semester 01 2024 Complete Answers in accordance to the questions provided in your assignment booklet. All questions are correctly answered and should be used for guidelines.

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QUESTION 1

a. (2 ANSWERS PROVIDED)

The National Credit Act 34 of 20051 applies to all credit agreements. Section 8 of the NCA provides that an agreement will be a credit agreement for the purposes of the NCA, if two elements are present, namely:

· some deferral of repayment or prepayment, and

· there is a fee, charge, or interest imposed with respect to a deferred payment, or a discount given when prepayments are made.

If these two elements are present agreement qualifies to be a “credit agreement” in terms of the NCA. Section 4 of the NCA provides that the Act applies to every “credit agreement” between parties who deal “at arm’s length” which is made within, or has an effect in South Africa, unless an exception applies.