LPL4801 Assignment 1 Semester 1 2025 – DUE 18 MARCH 2025

LPL4801 Assignment 1 Semester 1 2025 – DUE 18 MARCH 2025 QUESTIONS WITH COMPLETE ANSWERS Question Thandi is the sole owner of a catering business “Happy Snacky” which provides food catering services. Thandi wants to buy a second-hand Volkswagen Caddy to use in her business and Prestige Bank agrees to sell the vehicle to Thandi on credit. The agreement is signed at Thandi's home on 2 May and possession and use of the vehicle is given to her immediately. The agreement makes provision for the sale of the vehicle voetstoots at a price of R250,000 payable in monthly instalments over three years and provision is made for the payment of fees and interest. The agreement contains a clause that ownership of the vehicle will only pass to Thandi once she has satisfied all her financial obligations under the contract. (a) Advise Thandi on whether the National Credit Act 34 of 2005 (“the NCA”) is applicable to the agreement. (6) (b) Thandi comes to see you on 5 May. She