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Lml4807.Semester 1.assignment 2

The document describes an assignment regarding a car purchase agreement between Anthea and Goliath Bank. The key terms of the agreement are that Anthea will repay a R150,000 principal loan in 60 monthly installments at an interest rate that can change with the bank's prime rate. Anthea must also provide her PIN and bank card for the bank to debit repayments each month. The assignment poses three questions analyzing aspects of the agreement under the National Credit Act.

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70 views

Lml4807.Semester 1.assignment 2

The document describes an assignment regarding a car purchase agreement between Anthea and Goliath Bank. The key terms of the agreement are that Anthea will repay a R150,000 principal loan in 60 monthly installments at an interest rate that can change with the bank's prime rate. Anthea must also provide her PIN and bank card for the bank to debit repayments each month. The assignment poses three questions analyzing aspects of the agreement under the National Credit Act.

Uploaded by

karabo Mkhonto
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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LML4807 ASSIGNMENTS: SEMESTER 1

Assignment 02

Unique number: 672356

Submission date: 7 April 2022

Michelle is a car dealer. Michelle sells a VW Polo to Anthea on 1 April 2018. Anthea also
enters in an agreement with Goliath Bank (‘the bank’) who finances the purchase of the
vehicle. The material terms of the agreement between Anthea and the bank are the
following:
(i) the principal debt of R150,000 is payable by means of 60 equal monthly instalments
which are interest bearing;
(ii) the bank may increase or reduce the interest rate by the same margin as, and in
accordance with changes in the bank’s prime lending rate announced from time to
time;
(iii) Anthea must provide her PIN and bank access card to the bank so that the bank
can assure monthly repayment by Anthea; and
(iv) the bank remains owner of the vehicle until Anthea has fulfilled all her obligations in
terms of the agreement

Answer the following questions in relation to the factual scenario above:

Question 1
Does the National Credit Act 34 of 2005 apply to the agreement between Anthea and the
bank? If it does apply, what type of agreement does the contract between Anthea and the
bank constitute for purposes of the National Credit Act 34 of 2005? (10)

Question 2
Is the contractual term providing for interest rate amendments valid? (3)

Question 3
Is the contractual term that obliges Anthea to provide her PIN and bank card to the bank
valid? (2)

[15]
Total for assignment 2: 15 marks

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