The South African Law of Contract as Influenced by the National Credit Act 34 of 2005 : an evaluation

Abstract

This mini-dissertation explores the South African law of contract as influenced by the National Credit Act 34 of 2005. The National Credit Act has brought about a new era of consumer credit regulation and practice, which has introduced comprehensive changes to the consumer credit industry, as well as the law of contract. The Act provides for applied law of contract, in that, it only applies to credit agreements. A contractual agreement will only be legally binding upon the parties if all the contractual requirements are complied with, which requirements include consensus, contractual capacity, certainty, possibility, legality and formalities. This study illustrates specific provisions of the National Credit Act which have an influence or impact on the general principles of contract. This was done by considering specific provisions of the Act and by having regard to relevant case law. Aspects that inter alia fell outside the scope of this dissertation were the influence of the National Credit Act on the general principles of certainty and possibility. Finally, in view of the current consumer legislation and the common law position pertinent to contracts, recommendations were made where necessary in order to address shortcomings and problems with the National Credit Act.