Chapter 13
Related Sections
1
INTRODUCTION
2
WHAT IS A CONTRACT?
3
What are the requirements for a contract?
4
Can a minor enter into a contract?
5
Married people and contracts
6
Breaking a contract
7
What happens if there is a breach of contract?
8
When does a contract end?
9
THE NATIONAL CREDIT ACT (NCA) NO 34 OF 2005
10
The National Credit Amendment Act (No 7 of 2019)
11
The National Credit Regulator (NCR) and the Consumer Tribunal
12
Rules when marketing to consumers
13
Putting a ceiling on interest rates, fees and charges
14
Types of credit agreements
15
Protection when making a loan application
16
Reckless lending
17
Debt counselling
18
Administration order
19
Role of credit bureaus
20
Where can consumers lodge a complaint?
21
CONSUMER RIGHTS UNDER THE CONSUMER PROTECTION ACT, 2008 (CPA)
22
The right to privacy
23
The right to choose (including the right to choose to cancel)
24
The right to good quality and safety
25
The right to responsible marketing
26
The right to information
27
How can consumers lodge a complaint?
28
REPAYING DEBT
29
Legal consequences of defaulting on debt obligations
30
Judgements and other court orders
31
CONSUMER RIGHTS AND REMEDIES IN THE LEGAL PROCESS
32
General guidelines for consumers
33
Defences – Prescription and in duplum
34
Debt collector’s rules
35
When and how to have a judgement rescinded
36
Applying to court to have an emolument (salary) attachment order rescinded or amended
37
Applying to court to stop the sale of your goods
38
ATTORNEY’S FEES AND CHARGES
39
BEING UNDER ADMINISTRATION
40
USING A DEBT COUNSELLOR
41
HANDING BACK (SURRENDERING) GOODS BOUGHT ON CREDIT
42
MICROLENDING AND MICROLENDERS
43
What is microlending?
44
INSURANCE
45
What is insurance?
46
Life assurance
47
Short-term insurance
48
Investment insurance
49
Retirement annuity
50
PROBLEMS
51
Problem 1: Minor entering into a contract
52
Problem 2: Breaking a promise
53
Problem 3: Breach of contract
54
Problem 4: Something goes wrong with goods you have bought
55
Problem 5: Helping a person assess their financial situation and drawing up a budget
56
Problem 6: Helping a person who has a problem with repaying debt
57
Problem 7: Helping a person who has a problem with getting credit
58
Problem 8: Granting credit recklessly
59
Problem 9: Going to a debt counsellor
60
Problem 10: Repossession of goods with a valid court order
61
Problem 11: Repossession of goods without a court order
62
Problem 12: How to respond to a summons
63
Problem 13: Repossessed goods are sold for less than the amount still owing on the goods
64
Problem 14: Getting a civil judgment in a criminal case
65
Problem 15: Being robbed at an ATM
66
Problem 16: Cell phone scams, e-mail scams and card cloning
67
CHECKLIST
68
Checklist: Particulars to take for a consumer law problem

What happens if there is a breach of contract?

The law will help the innocent person if there is a breach of contract. The legal options are specific performance, interdict, suing for damages, and cancellation and damages.

SPECIFIC PERFORMANCE

Specific performance means the court orders the guilty person to do what was promised. For example, the court orders a builder to finish building a house. Sometimes the court will not order specific performance. This will happen if:

  • The guilty person (the person who broke the contract) can’t do what was promised
  • Paying money is a better way of compensating the innocent party
  • It would be unreasonable or unjust to make the guilty person carry out the contract

If the court orders the guilty person to carry out the contract, then the person must do this. If the person does not do what the court orders, he or she will be in ‘contempt of court’. The person could get a fine or a prison sentence.

INTERDICT

You can get an interdict from the court against a person who broke a contract with you. An interdict is a court order that prevents the guilty person from doing something or orders the guilty person to do something. (See Interdicts)

SUING FOR DAMAGES

Instead of cancelling the contract, the innocent person can decide to sue the other person for damages. This means you can claim money if you lost out in any way because the contract was broken.

CANCELLATION AND DAMAGES

One person can cancel a contract if the other person has not carried out an important part of the contract. Once the contract is cancelled nobody has to carry it out. The innocent person can also sue for damages. (See Problem 3: Breach of contract)