This blog was co-authored by Adriaan Lourens, Candidate Attorney.
In May 2025, the high court confirmed a lender’s right to enforce a pledge and cession agreement over a member’s interest in a close corporation (the debtor), despite the debtor having entered business rescue.
The lender had advanced two loans to the debtor. To secure the
The prescribed rate of interest is 10.75% per annum with effect from 1 July 2025. The previous rate was 11.00% per annum.
According to the Prescribed Rate of Interest Act, interest on debts where no rate is prescribed is calculated at the repo rate plus 3.5%. The prescribed rate of interest applies to all debts
In May 2025, the High Court found that a bundled credit life insurance product contravened the National Credit Act of 2005 by providing cover to policyholders who could not benefit from the cover offered. The credit life product included disability and retrenchment cover which the credit provider sold largely to pensioners, and to disabled persons
At the end of May 2025, the High Court held that where notice is given by the credit provider to the consumer under section 129(1)(a) of the National Credit Act drawing attention to a default, the credit provider must negotiate with the consumer who wants to make arrangements to pay off the arrears. The credit provider
This blog was co-authored by Adriaan Lourens, a Candidate Attorney.
In a May 2025 High Court judgment, the court held that, in the absence of a contractual provision expressly requiring written termination, an oral termination of a suretyship agreement is legally valid. This judgment provides useful guidance on the distinction between the formation and cancellation
In an April 2025 judgment, the High Court concluded that the defendant’s liability as a surety was not discharged by the release of the principal debtor under a business rescue plan (BR Plan). The BR Plan and the deed of suretyship were both clearly drafted to preserve the creditor’s right to claim from the surety.
The Supreme Court of Appeal clarified the scope and independence of on-demand guarantees, underscoring key principles that directly affect guarantors.
The guarantor issued three on-demand performance guarantees in favour of a developer for a large-scale housing project. The underlying construction contracts were cancelled and the guarantor received demands for payment under the performance guarantees. The
This blog was co-authored by Adrienne Hendricks, Trainee Associate and Adriaan Lourens, Candidate Attorney.
In April 2025 the High Court dealt with a bank’s claim for payment of R15 million, plus interest and costs, brought against the surety of a company. The company, as principal debtor, had concluded a loan agreement with the bank but
This blog is co-authored by Zubenathi Ndlwana and Brigitte Eloff (Candidate Attorneys)
In April 2025, the Supreme Court of Appeal (SCA) highlighted the importance of credit providers being registered before concluding credit agreements and advertising credit.
The appellant, a pawn broking business, gave short-term loans to consumers and in return retained possession of their movable
This blog is co-authored by Neshalia Nayagar, trainee associate.
On 21 February 2025, the Supreme Court of Appeal (SCA) held that the sale and lease transactions did not constitute credit agreements under the National Credit Act (NCA) and were not disguised or simulated agreements which were concluded on terms to avoid the provisions of the