Tag archives: Compound interest

When can you claim compound interest?

As a starting point, it is generally accepted that where compound interest is not expressly provided for in an agreement, only simple interest is due.  Compound interest is claimable only in certain defined circumstances namely (a) where parties agree to pay compound interest (b) if the obligation to pay interest is alleged and it is … Continue reading

Unspecified interest is simple, not compound interest

A contract specifying that interest must be “calculated daily” does not mean compounded daily or capitalised daily. Simple interest therefore applies. In Euro Blitz 21 (Pty) Ltd and Another v Secena Aircraft Investments CC the appeal court found that the words “calculated daily” in a written lease agreement and consequent court order did not mean … Continue reading