Abstract
LL.M.
This study attempts to address the extent to which the concept of good faith is
applied when concluding an agreement in terms of the National Credit Act 34 of
2005.
The reality is that we live in a diverse country and parties are often not on equal
footing when concluding a credit agreement. A consumer may attach a signature to
the agreement and thus be bound by it, but the question that remains is whether he
or she understands the terms that apply prior to binding himself or herself to that
agreement, that is often presented in a ‘standard form’.
Amongst other concerns, this study addresses the imbalance in the bargaining
position that many consumers find themselves in, and suggests possible solutions in
addressing these issues.
Recent amendments in legislation are also discussed, as well as possible drafting
solutions that promote the concept of good faith, as well as fairness.
Good faith and fairness only align with the sanctity of contract when the parties are
equally armed and equally aware of the consequences that they each may face.