n Tydskrif vir die Suid-Afrikaanse Reg - Informational duties of credit providers and mistake
2013 1 SA 219 (KZD) : regspraak

Volume 2014, Issue 1
  • ISSN : 0257-7747
  • E-ISSN: 1996-2207



The informational duties of credit providers in relation to "plain language" and the form of credit agreements came under the spotlight in the recent decision of 2013 1 SA 219 (KZD). The case concerned the sale of a second-hand vehicle on credit by S bank (the bank) to D (the buyer) through the agency of a car dealership. The buyer was an unsophisticated previously disadvantaged African male who had only completed schooling up to grade 3. Having discovered serious defects in the car, the buyer returned the car to the dealership four days after concluding the agreement and demanded a return of his deposit. However (possibly because the buyer failed to appreciate that the bank was his contractual partner, and not the dealership), the buyer never communicated either the return or the reasons for it to the bank. With no payments forthcoming from the buyer, the bank took steps to trace and repossess the vehicle at the dealership. Still ignorant as to the reasons for the return, the bank instituted a claim against the buyer for confirmation that the agreement had been terminated and for the costs of repossessing the vehicle. The core issue for decision was the nature and effect of the return.

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