Abstract
LL.M. (Commercial Law)
The National Credit Act replaced the Credit Agreements Act and the Usury Act and introduced
new concepts and classifications with new parameters to South African credit law. One of these
new concepts is the incidental credit agreement. Although the incidental credit agreement is
novel to South African credit law, the underlying agreements that form the basis of an incidental
credit agreement are well-known and part of our everyday existence. The underlying agreements
often become subject to the National Credit Act without our realising this or intending them to be
subject to the act.
This mini-dissertation discusses the theoretical aspects of the incidental credit agreement and
provides practical examples of such agreements, as found in legal precedent and in contracts
procured or drafted by the writer.