LML4807 ASSIGNMENT 2 SEMESTER 1 2023

LML4807 Assignment 2 Semester % TRUSTED workings, explanations and solutions. For assistance call or us on . Philip, one of your colleagues, approaches you during lunchtime at work. He informs you that he has recently entered into an agreement with ABC Finance. In terms of the agreement, ABC Finance advanced R50 000 to Philip. The amount of R50 000 must be repaid in monthly instalments over two years. Furthermore, an interest of 14% per annum is imposed in terms of the agreement. Philip is not certain whether the agreement constitutes a “credit agreement” for the purposes of the National Credit Act 34 of 2005. Please answer the following questions for Philip: Question 1: Briefly discuss whether the credit agreement between Philip and ABC Finance complies with the essential elements that must be included for a credit agreement to be a credit agreement in terms of the National Credit Act 34 of 2005? Do not include a discussion of the requirements contained in section 4 of the National Credit Act 34 of 2005. (2) Question 2: Assume that the National Credit Act 34 of 2005 applies to the credit agreement between Philip and ABC Finance. What rights will Philip (as the consumer) have in terms of the language of a credit agreement, and other related documents, according to the National Credit Act 34 of 2005. Briefly discuss. (8)