, 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. (6 marks)
(a) Advisability of Using the Provisional Sentence
Procedure
Yes, I would advise ADB Cables to use the Provisional
Sentence Procedure to recover the amount owed by
Brown Electrical. The reasons are as follows:
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. (6 marks)
(a) Advisability of Using the Provisional Sentence
Procedure
Yes, I would advise ADB Cables to use the Provisional
Sentence Procedure to recover the amount owed by
Brown Electrical. The reasons are as follows:
