UNIVERSITY OF SOUTH AFRICA
College of Law – Department of Private Law
⋄
LAW OF CREDIT
LPL4801
Assignment 1 – Semester 1, 2026
⋄
Module Code LPL4801 – Law of Credit
Assignment Assignment 1
Semester Semester 1, 2026
Due Date 18 March 2026
Qualification LLB / LLM
Institution University of South Africa (UNISA)
Faculty College of Law
Topic National Credit Act 34 of 2005 – Application, Registra-
tion, Interest and Remedies
Referencing OSCOLA
,UNISA | LPL4801 Law of Credit – Assignment 1
Contents
Introduction 3
Question (a): Applicability of the NCA 4
Question (b): Registration as Credit Provider 7
Question (c): Permissibility of the Interest Rate 9
Question (d): Remedies Available to P 11
Question (e): Latent Defects Exclusion Clause 15
Reference List 17
Page 2 of 17
, UNISA | LPL4801 Law of Credit – Assignment 1
Introduction
Paul (P) entered into a written credit agreement on 1 January with Suzie (S), a registered mo-
tor dealer, for the purchase of a motor vehicle valued at R400 000, payable in 20 equal monthly
instalments at an interest rate of 15% per annum. The vehicle was delivered on 2 January.
Ownership is deferred until the last instalment is paid. On 4 January, P seeks legal advice
because he has changed his mind and wishes to exit the agreement without financial loss. He
paid the first instalment on 2 January.
This advice addresses five questions: whether the National Credit Act 34 of 2005 (NCA) ap-
plies; whether S must register as a credit provider; whether the stated interest rate is lawful
under the NCA; what remedies are available to P under the NCA; and the effect of a clause
excluding S’s liability for latent defects if the NCA did not apply.
Page 3 of 17
College of Law – Department of Private Law
⋄
LAW OF CREDIT
LPL4801
Assignment 1 – Semester 1, 2026
⋄
Module Code LPL4801 – Law of Credit
Assignment Assignment 1
Semester Semester 1, 2026
Due Date 18 March 2026
Qualification LLB / LLM
Institution University of South Africa (UNISA)
Faculty College of Law
Topic National Credit Act 34 of 2005 – Application, Registra-
tion, Interest and Remedies
Referencing OSCOLA
,UNISA | LPL4801 Law of Credit – Assignment 1
Contents
Introduction 3
Question (a): Applicability of the NCA 4
Question (b): Registration as Credit Provider 7
Question (c): Permissibility of the Interest Rate 9
Question (d): Remedies Available to P 11
Question (e): Latent Defects Exclusion Clause 15
Reference List 17
Page 2 of 17
, UNISA | LPL4801 Law of Credit – Assignment 1
Introduction
Paul (P) entered into a written credit agreement on 1 January with Suzie (S), a registered mo-
tor dealer, for the purchase of a motor vehicle valued at R400 000, payable in 20 equal monthly
instalments at an interest rate of 15% per annum. The vehicle was delivered on 2 January.
Ownership is deferred until the last instalment is paid. On 4 January, P seeks legal advice
because he has changed his mind and wishes to exit the agreement without financial loss. He
paid the first instalment on 2 January.
This advice addresses five questions: whether the National Credit Act 34 of 2005 (NCA) ap-
plies; whether S must register as a credit provider; whether the stated interest rate is lawful
under the NCA; what remedies are available to P under the NCA; and the effect of a clause
excluding S’s liability for latent defects if the NCA did not apply.
Page 3 of 17
