Drafting of Credit Documentation

How is a Surety’s Right of Recourse Affected by the Business Rescue of the Principal Debtor?

Business Rescue and Suretyships With the introduction of business rescue in terms of Chapter 6 of the Companies Act No. 71 of 2008, one of the areas of contention has been its affect on the suretyships of the company in business rescue. The legal consensus seems to have been reached that: although a suretyship is …

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”In full and final settlement” …or is it? (Properly Drafting Settlement Agreements)

Settlement agreements form an essential part of commercial debt repayments. By acting as a recording of the agreed terms of the repayment, such agreements are meant to provide certainty as to the intention of the parties. It is for this very reason that the terms of settlement agreements should always be in writing and be …

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When does the National Credit Act Apply to a Transaction?

The Test for NCA Applicability The National Credit Act No. 34 of 2005 (“the NCA” or “Act”) has had a significant impact on transactions involving deferred payment and interest in South Africa. However, it has almost become trite law to refer to the interpretive challenges that arise out of the poor drafting, while at the …

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