TLI4801 Assignment 1
(COMPLETE ANSWERS)
Semester 1 2025 (835330) -
DUE 14 March 2025
100% GUARANTEEED
, TLI4801 Assignment 1 (COMPLETE
ANSWERS) Semester 1 2025 (835330) - DUE
14 March 2025
1. You act for ADB Cables (Pty) Ltd, a supplier of high
voltage electricity cables. lcp4801 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) lml4806
No, I would not advise ADB Cables to make use of the Provisional Sentence Procedure to
recover the amount owed by Brown Electrical. The reasons are as follows:
1. Requirements for Provisional Sentence Procedure: This procedure is only available
when the claim is based on a liquid document (e.g., a cheque, bill of exchange,
promissory note, or any document that contains an unconditional acknowledgment of
debt and a clear obligation to pay). While an Acknowledgment of Debt (AOD) is a
written acknowledgment of liability, it does not automatically qualify as a liquid
document unless it is properly structured as such (e.g., signed and containing an
unconditional undertaking to pay a specific amount).
2. Defenses and Delay: Even if the AOD meets the requirements of a liquid document,
Brown Electrical may still raise defenses against the claim, potentially delaying the
(COMPLETE ANSWERS)
Semester 1 2025 (835330) -
DUE 14 March 2025
100% GUARANTEEED
, TLI4801 Assignment 1 (COMPLETE
ANSWERS) Semester 1 2025 (835330) - DUE
14 March 2025
1. You act for ADB Cables (Pty) Ltd, a supplier of high
voltage electricity cables. lcp4801 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) lml4806
No, I would not advise ADB Cables to make use of the Provisional Sentence Procedure to
recover the amount owed by Brown Electrical. The reasons are as follows:
1. Requirements for Provisional Sentence Procedure: This procedure is only available
when the claim is based on a liquid document (e.g., a cheque, bill of exchange,
promissory note, or any document that contains an unconditional acknowledgment of
debt and a clear obligation to pay). While an Acknowledgment of Debt (AOD) is a
written acknowledgment of liability, it does not automatically qualify as a liquid
document unless it is properly structured as such (e.g., signed and containing an
unconditional undertaking to pay a specific amount).
2. Defenses and Delay: Even if the AOD meets the requirements of a liquid document,
Brown Electrical may still raise defenses against the claim, potentially delaying the
