CREDIT AGREEMENTS:
Financial & Contractual Aspects of • Contract between the consumer and the credit pro
• Consumer offered a loan to buy goods on credit an
which Consumers Should Note to pay the full amount + interest in the form of mo
installments for a fixed number of months
• Mortgage/home loan: money borrowed from a ba
CONTRACTS EMPLOYMENT CONTRACTS: institution to buy a property
A legally valid agreement between two or more parties where • Agreement between employer and employee • Bank pays full purchase price of property o
an offer is made, and its terms and conditions are accepted • Legal contract consumer
• Signed by employer, employee and two witnesses • Consumer pays the full amount + interest
Types of agreements: fixed number of years in the form of fixed
• Oral agreements PURCHASE AND SALE AGREEMENTS: • Consumer becomes the legal owner when
• Silent agreements • Between a seller and a buyer of a property been paid in full
• Written contract • Offer to purchase becomes a legal purchase and sale • Bank loan: an agreement between a bank and a co
agreement as soon as the seller accepts and signs the • Bank lends money to the consumer who p
Requirements for valid contracts: written offer of the buyer amount + interest back over a fixed period
• Consent (acceptance of offer) • Buyer and seller must comply with the terms of the monthly installments
• All parties must have the capacity to contract (18 or older contract • Hire-purchase (instalment sale) contracts: consum
and of sound mind) • Consumer pays a deposit and then instalm
• Contract can’t be illegal INSURANCE POLICIES: fixed period until the goods are paid for in
• Agreement and consent must be voluntary • Agreement between consumer and insurance company • Consumer receives goods after signing the
• Contractual obligations must be possible to perform • Insurance company undertakes to compensate the paying the deposit
consumer in the case of loss or damage to the insured • Ownership is transferred after the final pay
Breach of contract: goods • Retailer is entitled to take back the goods i
• When one of more parties fail to perform the obligations • Consumer undertakes to pay monthly instalments breaches the contract
specified in the contract • Household, motor vehicle, life insurance, medical • Lay-by: consumer and retailer
• Consequences: fund/hospital plan • Some as hire-purchase, but consumer only
• Go to court fine/jail sentence/sue for damages after the final payment – retailer keeps the
• Interdict can prevent the guilty party from GYM MEMBERSHIPS, CELL PHONE CONTRACTS & then
continuing his/her work SUBSCRIPTIONS: • No additional cost or interest
• Contract cancelled or declared void • Credit accounts at shops: consumer and retailer
• Between consumers and credit provider for a fixed number
of months • Open-end/revolving credit account is set u
BUSINESS CONTRACTS/PARTNERSHIP AGREEMENTS: payment period
• Between two or more people wanting to start a business LEASES: • Consumer can buy on credit up to a specifi
• Should specify: • Lessor and lessee • Consumer pays minimum monthly amount
• Amount of capital, assets and expertise each partner will contribute • Lessee takes on the lease of the • Interest charged on outstanding balance. A
• The share in profit or loss of each partner property for a minimum period interest charged if minimum amount is no
• The roles and responsibilities of each partner at a fixed rent the payment dates
• Terms and conditions applicable to the termination of the contract • Legal document
Financial & Contractual Aspects of • Contract between the consumer and the credit pro
• Consumer offered a loan to buy goods on credit an
which Consumers Should Note to pay the full amount + interest in the form of mo
installments for a fixed number of months
• Mortgage/home loan: money borrowed from a ba
CONTRACTS EMPLOYMENT CONTRACTS: institution to buy a property
A legally valid agreement between two or more parties where • Agreement between employer and employee • Bank pays full purchase price of property o
an offer is made, and its terms and conditions are accepted • Legal contract consumer
• Signed by employer, employee and two witnesses • Consumer pays the full amount + interest
Types of agreements: fixed number of years in the form of fixed
• Oral agreements PURCHASE AND SALE AGREEMENTS: • Consumer becomes the legal owner when
• Silent agreements • Between a seller and a buyer of a property been paid in full
• Written contract • Offer to purchase becomes a legal purchase and sale • Bank loan: an agreement between a bank and a co
agreement as soon as the seller accepts and signs the • Bank lends money to the consumer who p
Requirements for valid contracts: written offer of the buyer amount + interest back over a fixed period
• Consent (acceptance of offer) • Buyer and seller must comply with the terms of the monthly installments
• All parties must have the capacity to contract (18 or older contract • Hire-purchase (instalment sale) contracts: consum
and of sound mind) • Consumer pays a deposit and then instalm
• Contract can’t be illegal INSURANCE POLICIES: fixed period until the goods are paid for in
• Agreement and consent must be voluntary • Agreement between consumer and insurance company • Consumer receives goods after signing the
• Contractual obligations must be possible to perform • Insurance company undertakes to compensate the paying the deposit
consumer in the case of loss or damage to the insured • Ownership is transferred after the final pay
Breach of contract: goods • Retailer is entitled to take back the goods i
• When one of more parties fail to perform the obligations • Consumer undertakes to pay monthly instalments breaches the contract
specified in the contract • Household, motor vehicle, life insurance, medical • Lay-by: consumer and retailer
• Consequences: fund/hospital plan • Some as hire-purchase, but consumer only
• Go to court fine/jail sentence/sue for damages after the final payment – retailer keeps the
• Interdict can prevent the guilty party from GYM MEMBERSHIPS, CELL PHONE CONTRACTS & then
continuing his/her work SUBSCRIPTIONS: • No additional cost or interest
• Contract cancelled or declared void • Credit accounts at shops: consumer and retailer
• Between consumers and credit provider for a fixed number
of months • Open-end/revolving credit account is set u
BUSINESS CONTRACTS/PARTNERSHIP AGREEMENTS: payment period
• Between two or more people wanting to start a business LEASES: • Consumer can buy on credit up to a specifi
• Should specify: • Lessor and lessee • Consumer pays minimum monthly amount
• Amount of capital, assets and expertise each partner will contribute • Lessee takes on the lease of the • Interest charged on outstanding balance. A
• The share in profit or loss of each partner property for a minimum period interest charged if minimum amount is no
• The roles and responsibilities of each partner at a fixed rent the payment dates
• Terms and conditions applicable to the termination of the contract • Legal document
