Absa Bank Limited v Johan Serfontein and Another (740/2023)
Absa Bank Limited v Johan Serfontein and Another (740/2023) [2025] ZASCA 11; [2025] 2 All SA 1 (SCA); 2025 (3) SA 345 (SCA) (10 February 2025)
The Supreme Court of Appeal held that the AOD/POA was a supplementary agreement under the National Credit Act, as it regulated the same subject matter as the original overdraft and surety agreements. Clauses 2 and 13 of the AOD/POA were found to be unlawful under section 90(2): clause 13 attempted to exclude the application of the NCA, defeating its purpose, while clause 2 granted ABSA an irrevocable power of attorney to sell the property without a court order, contravening statutory and constitutional protections. The respondents were found to have been induced to sign the agreement under th…
Source excerpt
- National Credit Act
- Supplementary Agreement
- Parate Executie
- Unlawful Provisions
- Severance Of Contract
- Consumer Protection