Consumers creditors act

Question 1

Loan for consumption

Answer 1

A contract by which a lender lends the borrower a fungible thing

In return thereafter, the borrower agrees to return a thing of same value, quality and quantity.

Question 2

Fungible thing

Answer 2

Subject matter of loan consumed by use

Question 3

Elements of a loan for consumption

Answer 3

1. Fungible thing
2. Return of equivalent thing
3. Formalities
   At common law there are no formalities but if it is a credit transaction it must comply with specific regulations and legalities.

Question 4

Which loans qualify as credit transactions?

Answer 4

Any loans which bear interest and is not one of the applications excluded from the Act.

Question 5

In duplum rule:

Answer 5

A rule based on a public policy designed to protect borrowers from exploitation by lenders.

As such it cannot be waived by borrowers or altered by lenders.

Court is not obliged to consider the in duplum rule unless the debtor has raised it in his pleadings or unless it is clearly applicable from the evidence before the court.