1. Cobus approaches you for legal advice on 9 September 2021.

He informs you that he does not

require advice in his personal capacity, but on behalf of the sport club of which he is the chairperson.
Cobus informs you that a year ago the sport club, AMC Rovers, an association of persons (with an
asset value or annual turnover of R950 000), bought irrigation equipment to the value of R200 000
from Very Wet (Pty) Ltd, a supplier of irrigation equipment. The particulars of the fixed-sum contract,
which was concluded in Pretoria and which complies with the common law requirements for a valid
and binding contract of sale, are as follows: The purchase price of R200 000, together with interest
and costs, is payable to Very Wet (Pty) Ltd in four half-yearly instalments. In terms of the contract of
sale AMC Rovers will become the owner of the irrigation equipment upon payment of the full
purchase price together with interest and costs. According to Cobus he ascertained on the day prior
to consulting with you that Very Wet (Pty) Ltd is not registered as a credit provider with the National
Credit Regulator. Which one of the following options is correct?

a. The agreement between AMC Rovers and Very Wet (Pty) Ltd is lawful and enforceable in terms of
the National Credit Act 34 of 2005.

*b. The agreement between AMC Rovers and Very Wet (Pty) Ltd is unlawful and void in terms of the
National Credit Act 34 of 2005.

c None of the mentioned options.

d. The agreement between AMC Rovers and Very Wet (Pty) Ltd is valid but voidable in terms of the
National Credit Act 34 of 2005.

2. Mr Tlhomola approaches you for legal advice. He informs you that he represents his soccer club,
which is an association of persons. He further informs you that the club borrowed R250 000 from ABC
Bank in terms of a written agreement that was concluded in Pretoria on 1 August 2021. The
agreement determines that the club has to repay the R250 000 to ABC Bank with interest in monthly
instalments. The agreement provides that instalments paid by the club would not create new credit for
the club. The legal rules applicable to the agreement between Mr Thlomola and ABC Bank are (only
one option is correct):

a. only the National Credit Act 34 of 2005.

b. the National Credit Act 34 of 2005 and the common law.

*c. only the common law.

d. none of the mentioned options.

3. Mr Aphane informs you that he has recently concluded a suretyship agreement on behalf of his
partnership, ABC Partnership, with Lucky’s Stores. The suretyship agreement pertains to an
agreement in terms of which ABC Partnership bought furniture from Lucky’s Stores for an amount of
R15 000. Mr Aphane further informs you that ABC Partnership has an asset value and/or annual
turnover of R1 million and that the sale of the furniture took place in terms of a fixed-sum sale
agreement that contains an ownership reservation clause. In terms of the sale agreement, which was
concluded in Johannesburg, the R15 000 will be payable to Lucky’s Stores in compulsory minimum
instalments and interest will be levied on it. The legal rules applicable to the suretyship agreement are
(only one option is correct):

a. only the National Credit Act 34 of 2005.

b. the National Credit Act 34 of 2005 and the common law.

*c. only the common law.

d. none of the mentioned options.

4. ABC Partnership (which has an asset value and/or annual turnover of less than R1 million) bought
furniture from Lucky’s Stores for an amount of R240 000. The sale of the furniture took place in terms
of a sale agreement that does not contain an ownership reservation clause. In terms of the sale
agreement, which was concluded in Cape Town on 1 August 2021, the R240 000 will be payable to
Lucky’s Stores in compulsory minimum instalments and interest will be levied on it. The agreement
provides that instalments paid by the partnership will not create new credit for the partnership. The
legal rules applicable to the agreement between ABC Partnership and Lucky’s Stores are (only one
option is correct):

a. only the National Credit Act 34 of 2005.

*b. the National Credit Act 34 of 2005 and the common law.

c. only the common law.

d. none of the mentioned options.

5. XYZ Partnership borrowed R100 000 from ABC Bank in terms of a written agreement that was
concluded in Pretoria on 1 August 2021. The agreement determines that the partnership has to repay
the R100 000 to ABC Bank with interest in monthly instalments. The agreement provides that
instalments paid by the partnership will create new credit for the partnership. In terms of the National
Credit Act 34 of 2005 the agreement between ABC Bank and XYZ Partnership is: (only one option is
correct):

*a. a credit facility.

b. a section 8(4)(f) other agreement.

c. a store card transaction.

d. an instalment agreement.

6. Indicate whether the following statement is true of false:

Peter (the purchaser) approaches you for legal advice. Peter informs you that he bought a vehicle in
terms of a written agreement. The agreement was concluded in Pretoria at Peter’s place of
employment. Upon further inquiry it appears that Peter bought the vehicle from his very close friend
(the seller). The purchase price of the vehicle is R300 000. The purchase price is payable in monthly
instalments and interest (at an interest rate similar to the prevailing interest rate in the credit market)
is levied by the seller. The vehicle was delivered to Peter on the day of conclusion of the contract. In
terms of the contract Peter will only become the owner of the vehicle once the final instalment has
been paid. The agreement between Peter and his friend is subject to the National Credit Act 34 of
2005 and the common law.

True