Pre-Agreement Proposal – Instalment Sale Agreement

Description

PRE-AGREEMENT PROPOSAL

For an Instalment Sale Agreement

(in terms of the NCA)

Summary A lender that finances goods (such as computers, vehicles, equipment, office furniture etc) for people on an instalment sale basis may consider using this Pre-Agreement Proposal together with their own instalment sale agreement conditions. This Pre-Proposal Quotation has been drafted with the National Credit Act in mind.

Why would I need a Pre-Agreement Proposal? The National Credit Act requires a lender to provide a borrower with a pre-agreement quotation before the credit agreement is entered into. This pre-agreement proposal is effectively a quotation that sets out the amount of the credit facility and the terms of the borrower’s repayment. A Pre-Agreement Quotation provides for a loan that is repaid in instalments over a specific period, with regular payment obligations.

This document does not include the Instalment Sale Agreement. We do also offer an Instalment Sale Agreement that includes the Pre-Agreement Proposal.

What does the template proposal say? The template covers the following issues: Description of goods; Finance details; Finance term; Instalments.

How long is the proposal? The document can be printed onto three pages.

What do you need to do to use the Pre-Agreement Quotation?

• Read the template document to ensure that it suits your requirements. Make changes as required.
• Complete the relevant details in the Quotation as they pertain to the borrower.
• Ensure that the document is signed by both the financier and the borrower.
• Ensure that you also have an Instalment Sale Agreement.

Before signing this document, the financier is advised to conduct a comprehensive financial and credit check on the borrower, and get the borrower to complete a separate application form for a credit facility.

This Pre-Agreement Quotation is intended for use in cases where the National Credit Act applies. While it has been drafted in accordance with our interpretation of the legislation, we recommend that you obtain specialist advice before using any document required by the NCA. Agreements Online will not be liable for any damages you may suffer due to your non-compliance with any regulatory requirements.

Also known as: Pre-Agreement Quotation; Quotation/Proposal in terms of NCA

Also viewed: Financial Lease Agreement

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