LPL4801 Assignment 1 (DETAILED ANSWERS) Semester 1 2024 - DISTINCTION GUARANTEED

LPL4801 Assignment 1 (ANSWERS) Semester 1 2024 - DISTINCTION GUARANTEED. Answers, guidelines, workings and references..... ........ Paul (P) concludes a written agreement purchasing a motor vehicle from S (Suzie), a motor dealer, on 1 January. The agreement is concluded at S’s registered business address. The purchase price of the vehicle is R400,000 and is payable in 20 equal monthly instalments. The agreement also makes provision for P to pay at 15% interest per annum to S in respect of the deferred purchase price. There is a term in the contract that ownership in respect of the vehicle will only pass to P once the last instalment has been paid. The motor vehicle is delivered to P on 2 January. P approaches you for legal advice on 4 January. P explains to you that although he can afford the vehicle he has changed his mind and no longer wishes to continue with the agreement. P also informs you that he paid the first instalment on 2 January and would like to claim back this instalment without incurring any financial loss. S did not ask P any questions before the conclusion of the agreement. (a) Advise P in full on whether the National Credit Act 34 of 2005 (“the NCA”) is applicable to this agreement. (6) (b) Advise P whether S has to register as a credit provider for purposes of the agreement above. (3) (c) Advise P whether the stated interest rate is allowed in terms of the NCA. (2) (d) Advise P if there are any remedies available to him in terms of the NCA. (5) (e) What effect would a clause in the contract excluding the liability of S for any latent defects in the vehicle have if the NCA did not apply? Discuss briefly. (4)