TLI4801
ASSIGNMENT 1 –
SEMESTER 1
(2025) – [835330]
DUE 14 MARCH
2025
, TLI4801 ASSIGNMENT 1 – SEMESTER 1
(2025) – [835330] DUE 14 MARCH 2025
QUESTIONS: 1. You act for ADB Cables (Pty) Ltd, a
supplier of high voltage electricity cables. Brown
Electrical (Pty) Ltd is one of the customers of ADB Cables
and the latter on 01 October 2024 supplied cables to
Brown Electrical on terms requiring payment to be made
within 60 days of delivery. You are approached by ADB
Cables with instructions to recover an amount of R1.2M
which is owed to your client by Brown Cables. You
proceed to serve Brown Electrical with a demand. Upon
receipt of the demand, Brown Electrical, through its sole
director and shareholder, Dennis Brown, informs you that
Brown Electrical acknowledges its debt to ADB Cables
and subsequently enters into an acknowledgement of
debt (AOD). Brown Electrical subsequently fails to abide
by the payment procedure agreed upon in the AOD. (a)
Would you advise ADB Cables to make use of the
Provisional Sentence Procedure to recover the amount
owing? Provide reason(s) for your answer.
Yes, ADB Cables can make use of the Provisional Sentence Procedure because:
1. The Debt is Based on a Liquid Document
o The Acknowledgement of Debt (AOD) signed by Brown Electrical constitutes a
liquid document, meaning it is a written instrument that unambiguously
acknowledges the existence and amount of the debt.
o In South African law, a creditor can use the provisional sentence procedure
when claiming an amount based on a liquid document.
2. Quick Recovery of Debt
o Provisional sentence allows ADB Cables to obtain a court order quickly without
going through a lengthy trial.
o This is crucial because Brown Electrical has already failed to adhere to the
agreed-upon payment terms.
3. Burden on the Defendant
ASSIGNMENT 1 –
SEMESTER 1
(2025) – [835330]
DUE 14 MARCH
2025
, TLI4801 ASSIGNMENT 1 – SEMESTER 1
(2025) – [835330] DUE 14 MARCH 2025
QUESTIONS: 1. You act for ADB Cables (Pty) Ltd, a
supplier of high voltage electricity cables. Brown
Electrical (Pty) Ltd is one of the customers of ADB Cables
and the latter on 01 October 2024 supplied cables to
Brown Electrical on terms requiring payment to be made
within 60 days of delivery. You are approached by ADB
Cables with instructions to recover an amount of R1.2M
which is owed to your client by Brown Cables. You
proceed to serve Brown Electrical with a demand. Upon
receipt of the demand, Brown Electrical, through its sole
director and shareholder, Dennis Brown, informs you that
Brown Electrical acknowledges its debt to ADB Cables
and subsequently enters into an acknowledgement of
debt (AOD). Brown Electrical subsequently fails to abide
by the payment procedure agreed upon in the AOD. (a)
Would you advise ADB Cables to make use of the
Provisional Sentence Procedure to recover the amount
owing? Provide reason(s) for your answer.
Yes, ADB Cables can make use of the Provisional Sentence Procedure because:
1. The Debt is Based on a Liquid Document
o The Acknowledgement of Debt (AOD) signed by Brown Electrical constitutes a
liquid document, meaning it is a written instrument that unambiguously
acknowledges the existence and amount of the debt.
o In South African law, a creditor can use the provisional sentence procedure
when claiming an amount based on a liquid document.
2. Quick Recovery of Debt
o Provisional sentence allows ADB Cables to obtain a court order quickly without
going through a lengthy trial.
o This is crucial because Brown Electrical has already failed to adhere to the
agreed-upon payment terms.
3. Burden on the Defendant
