n SA Mercantile Law Journal = SA Tydskrif vir Handelsreg - The incorrect understanding of an incidental credit agreement leads to undesirable consequences : : case notes

Volume 23, Issue 1
  • ISSN : 1015-0099
  • E-ISSN: 1996-2185



The National Credit Act 34 of 2005 (the 'NCA'), which took effect on 1 June 2007, applies to 'every credit agreement' (s 4(1)), being a credit facility (s 8(1)(a)), credit transaction (s 8(1)(b)), credit guarantee (s 8(1)(c)), any combination of the above (s 8(1)(d)), and an altruistic agreement (ss 10 and 11). With regards to a 'credit transaction', s 8(4)(b) of the NCA states that an incidental credit agreement is a form of a credit transaction. From this it is clear that an incidental credit agreement is a credit transaction which, in turn, is a credit agreement under the NCA.

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