STUDY UNIT 4

Question 1

TACIT REAL SECURITY (by operation of law) INCLUDES:

Answer 1

1. Landlord’s hypothec
2. Instalment agreement hypothec
3. Lien or right of retention.

Question 2

A CONTRACTUAL LIEN:

Answer 2

apply when the debt is based on a contract between the parties.

Question 3

AN ENRICHMENT LIEN:

Answer 3

arises in instances where the work done, or the money spent is not based on a contract.

Question 4

A SALVAGE OR STORAGE LIEN:

Answer 4

the retentor’s claim is limited to the actual necessary expenses he incurred.

Question 5

TWO CATEGORIES OF SECURITY:

Answer 5

1. Real security
2. Personal security

Question 6

REAL SECURITY:

Answer 6

entails an arrangement whereby an asset is used as security for the debt.

Question 7

PERSONAL SECURITY:

Answer 7

entails an arrangement whereby a third party binds himself contractual to fulfil the principal debtor’s obligations should the latter not do so.

Question 8

WHAT IS A SURETYSHIP?

Answer 8

Suretyship is a contract in terms of which a third party binds himself to the creditor for the proper performance of the whole or part of the debt of another.

Question 9

BENEFITS OF A SURETYSHIP:

Answer 9

1. Benefit of excussion
2. Benefit of division
3. Benefit of cession of action
4. Recourse against co-sureties
5. Recourse against the principal debtor.

Question 10

REQUIREMENTS FOR AN EXPRESS REAL SECURITY:

Answer 10

1. A debt or obligation must exist
2. over property
3. in terms of a security agreement
4. an act of publicity

Question 11

TYPES OF MORTGAGES:

Answer 11

1. A Kustingsbrief
2. A Sectional Mortgage Bond
3. A Participation Bond
4. A Collateral Bond
5. A Surety Bond
6. Indemnity Bond