TLI4801 Assignment 1 Semester 2 2025 (Answer Guide) - Due 21 August 2025

TLI4801 Assignment 1 Semester 2 2025 (Answer Guide) - Due 21 August 2025 Question 1 (a) Would you advise ADB Cables (Pty) Ltd to make use of the Provisional Sentence Procedure to recover the amount owing? Provide reason(s) for your answer. (5) Yes, I would advise ADB Cables (Pty) Ltd to make use of the Provisional Sentence Procedure to recover the amount of R1.5 million from Brown Cables (Pty) Ltd. This recommendation is based on the following reasons: 1. Existence of a Liquid Document: In this scenario, Brown Cables (Pty) Ltd has signed an Acknowledgement of Debt (AOD) which is a written and signed document acknowledging liability for a fixed amount of money. This qualifies as a liquid document, which is a key requirement for instituting provisional sentence proceedings (Erasmus et al., Superior Court Practice). 2. Swift Legal Remedy: The provisional sentence procedure is designed to allow a creditor with a liquid document to obtain quick relief by compelling the debtor to pay the amount or show cause why judgment should not be granted. It saves time and avoids the delays of ordinary trial procedures. 3. Default in Payment: Brown Cables (Pty) Ltd has breached the payment arrangement set out in the AOD. Since the debt is admitted and the debtor has defaulted on the agreed terms, ADB Cables (Pty) Ltd can rely on the AOD as a basis to approach the court for provisional sentence. 4. Burden of Proof: In provisional sentence proceedings, the onus is initially on the creditor (plaintiff) to present the liquid document. Once this is done, the burden shifts to the defendant to