LPL4801
Assignment 1 Semester 2 2025
Unique Number: 185363
Due Date: 29 August 2025
QUESTION 1
(a) Applicability of the National Credit Act
The National Credit Act 34 of 2005 (“NCA”) applies to all credit agreements between parties
dealing at arm’s length, unless specifically exempted under section 4.1 A credit agreement
includes both credit facilities and credit transactions. Section 8(4)(d) defines an instalment
agreement as a credit agreement where payment of the purchase price is deferred and
interest or fees are charged.1
Patricia purchased the Jacuzzi for R52,000 on credit, with payment in twelve instalments,
together with interest at 18% per annum. Ownership was retained by Luxury Pools until full
payment, a hallmark of an instalment sale agreement under the NCA. She is a natural
person, and the loan amount is below the statutory threshold that could exempt large juristic
persons.
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
Assignment 1 Semester 2 2025
Unique Number: 185363
Due Date: 29 August 2025
QUESTION 1
(a) Applicability of the National Credit Act
The National Credit Act 34 of 2005 (“NCA”) applies to all credit agreements between parties
dealing at arm’s length, unless specifically exempted under section 4.1 A credit agreement
includes both credit facilities and credit transactions. Section 8(4)(d) defines an instalment
agreement as a credit agreement where payment of the purchase price is deferred and
interest or fees are charged.1
Patricia purchased the Jacuzzi for R52,000 on credit, with payment in twelve instalments,
together with interest at 18% per annum. Ownership was retained by Luxury Pools until full
payment, a hallmark of an instalment sale agreement under the NCA. She is a natural
person, and the loan amount is below the statutory threshold that could exempt large juristic
persons.
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
