Discount Agreement Definition

December 7, 2020 in Uncategorized by

We then have to look at what an auxiliary loan contract is. In most cases, there is no intention to make a credit transaction, but it is then covered by the definition of the auxiliary credit contract. The National Credit Act defines an unrelated credit contract as an agreement, in whatever form, in which an account for goods or services provided to the consumer, or goods or services to be provided to a consumer for a certain period of time and one or two conditions apply: A frequently asked question And understandably is the difference between a discount transaction and a discount transaction? At first glance, the definitions in the National Credit Act, 2005 (the “NCA”) seem almost identical, but the type of transaction must be considered to distinguish the two. Basically, two prices are listed in advance and you can then choose to pay the lowest price (relative to the discounted amount) until a certain time, or pay the highest price at a later date, or even periodically. If the payment is deferred, it is a credit transaction when a commission, tax or interest is levied on the deferred amount. As a general rule, if no commission, commission or interest is collected, this is not considered a credit transaction. The controversy over registration and NCA agreements may not be over. From a business perspective, an asset has no value unless it can generate cash flow in the future. Stocks pay dividends.

Bonds pay interest and projects offer investors incremental cash flows. The present value of these future cash flows is calculated by applying a discount factor to future cash flows. For more information on the application of transactions and credit contracts to the company, please contact our offices on 27 21 200 0770. Parties to a registration agreement do not treat it as a credit agreement for the purposes of the AAFC. Indeed, in many cases, the only or the main reason for favouring a registration-related agreement over a loan agreement is to avoid the NCA for one or both parties. In many cases, registration agreements may not be controversial, but in some cases, a registration agreement may be a simulated operation. If z.B. is known in advance or if one or both parties to a registration agreement can easily find that the discount cannot legally supply the Merx properly, the parties cannot reasonably intend to enter into a discount agreement.