LPL4801 Assignment 1 (COMPLETE ANSWERS) Semester 2 2026 - DUE 28 August 2026

LPL4801 Assignment 1 (COMPLETE ANSWERS) Semester 2 2026 - DUE 28 August 2026... ASSIGNMENT 01 – SECOND SEMESTER DUE DATE: 28 August 2026 15:00 COMPULSORY ASSIGNMENT UNIQUE NUMBER: 270887 Instructions • This assignment should be submitted by all students registered for the SECOND SEMESTER. • NB: It is compulsory for you to answer both questions. However, only one of the questions will be marked. If one of the questions is not completed, 5 marks will be deducted. • Your assignment has to be submitted through Turnitin. • Your assignment must be typed. You will receive 0% for a handwritten assignment. • Please fill in the correct unique number on your assignment. • Your answers may not exceed two typed pages per question. You must further comply with the requirements for assignments. See Tutorial Letter 301 in this regard. • Keep the checklist and criteria below in mind when doing this assignment, because you will be assessed according to the criteria in the checklist. Checklist Assessment criteria Yes No Did you identify the legal problem involved? Did you identify and use the most appropriate legal sources and authorities to solve the problem? Did you analyse these sources and critically evaluate them in terms of the identified problem? Did you appropriately use the authorities to substantiate your arguments and to support your solution of the identified problem? Did you use language consistent with the conventions in the discipline of law? Did you understand the terms, rules, concepts, principles and theories related to the question? Was the advice you gave on an appropriate course of action in your answer responsible? In other words did your setting out of the law and application thereof to the facts support the advice you gave? Did you act responsibly and ethically as researcher and scholar, e.g. refer appropriately, acknowledge sources and avoid plagiarism? Did you keep to the length restriction? • It is of the utmost importance that you write a carefully formulated, grammatically correct answer. You must, as far as possible, use your own words when you answer the assignment. If you merely copy sections of the study guide or textbook, you will be penalised. It is plagiarism. You may also not use Artificial Intelligence (AI) to do the assignment. If you do, you will be penalised. • NB: Read Study Guide 3 (Statutory regulations regarding certain contracts of sale and lease), and answer the following compulsory question: Forever You (Pty) Ltd is a well-known clothing store in South Africa. They offer store cards to customers who buy clothing on credit and are a registered credit provider in terms of the National Credit Act 34 of 2005. When customers buy clothing on credit, an interest rate of 20% per annum is charged on the outstanding amount 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 contract that ownership in respect of the vehicle will only pass to P once the last instalment has been paid. The motor vehicle is delivered to P on 2 January. P approaches you for legal advice on 4 January. P explains to you that although he can afford the vehicle he has changed his mind and no longer wishes to continue with the agreement. P also informs you that he paid the first instalment on 2 January and would like to claim back this instalment without incurring any financial loss. S did not ask P any questions before the conclusion of the agreement. Advise your client in full whether the National Credit Act 34 of 2005 (the NCA) is in fact applicable to the said agreement. ( Advise your client in full whether the interest rate that was charged is allowed under the NCA and, if not, the effect on the validity of the agreement. Advise your client whether it is possible that the NCA and the Consumer Protection Act 68 of 2008 can be applicable to this agreement. Also remember to refer to applicable case law in your answer. Assume that the NCA applies to the facts. Advise your client in full regarding the allegation that your client entered into a reckless credit agreement with Judy and the effect thereof. Paul is a well-known clothing store in South Africa. They offer store cards to customers who buy clothing on credit and are a registered credit provider in terms of the National Credit Act 34 of 2005. When customers buy clothing on credit, an interest rate of 20% per annum is charged on the outstanding amount. Judy, a customer, opens an account on 1 May at Paul. Based on her salary slips and the credit assessment performed by Paul, she is allowed a credit limit of R5,000. During the credit assessment Judy has an hour-long interview with a credit consultant of Paul. Amongst other things, her assets and liabilities are verified according to the information provided by Judy and the implications of opening the account are explained to her. However, Judy did not mention that she owes a friend R10, 000 that the friend loaned to her. On the same day, she spends R5,000 on new clothes. She pays the first instalment on 1 June , but fails to make any further payments. Judy’s friend has demanded repayment of the R10, 000 and Judy is short on cash. You are acting as Paul’s legal representative. It transpires that Judy has obtained legal advice from Kenny Y Attorneys. The attorneys have addressed a letter to your client with the following allegations: That the credit agreement between Paul and Judy is a credit facility in terms of the National Credit Act 34 of 2005, and that the interest rate that is charged by your client is excessive, rendering the agreement between your client and Judy null and void. It is further alleged that the clothing was of bad quality and that Judy is entitled to return the clothing in terms of the Consumer Protection Act 68 of 2008. In the alternative, it is stated that your client entered into a reckless credit agreement with Judy, rendering the credit agreement null and void.