Forsyth v Heydenrych (31749/2011)
Forsyth v Heydenrych (31749/2011) [2018] ZAGPJHC 568 (18 October 2018)
The court found that the loan agreement between the plaintiff and defendant did not specify a clear time for repayment, rendering the term void for vagueness. Applying established principles, the loan was deemed repayable within a reasonable time, which the court determined to be 24 months from advancement, or at the latest, upon demand or service of summons. The applicable interest rate was interpreted as prime minus 1.7% initially, with a valid oral variation to 14.5% per annum, increasing by 0.5% every three months from October 2010. The court held that the parties were not dealing at arm'…
Source excerpt
- Loan Agreement
- Contract Rectification
- Interest Rate Variation
- National Credit Act Exclusion
- Family Relationships In Contract
- Reasonable Time For Repayment