LPL4801 ASSIGNMENT 1 2026 - DISTINCTION | Due 18 March 2026

LPL4801 ASSIGNMENT 1 2026 DUE 18 MARCH 2026 Paul (P) concludes a written agreement purchasing a motor vehicle from S (Suzie), a motor dealer, on 1 January. The agreement is concluded at S’s registered business address. The purchase price of the vehicle is R400,000 and is payable in 20 equal monthly instalments. The agreement also makes provision for P to pay at 15% interest per annum to S in respect of the deferred purchase price. There is a term in the (a) Advise P in full on whether the National Credit Act 34 of 2005 (“the NCA”) is applicable to this agreement. The agreement constitutes a "credit agreement" as defined in section 8 of the NCA. It specifically qualifies as an "instalment agreement" as described in section 8(4)(c) of the NCA.¹ An instalment agreement is defined as a sale of movable property where all or part of the purchase price is deferred and paid by periodic payments; possession and use of the property is transferred to the consumer; and ownership either passes immediately subject to a right of repossession, or on satisfaction of all the consumer's financial obligations.² In this case, Paul purchases a motor vehicle (movable property) from Suzie, a motor dealer, for R400,000 payable in 20 equal monthly instalments. The