WHAT ARE THE COMMON LAW RULES AND LEGISLATIVE RULES THAT GOVERN MORA INTEREST IN SOUTH AFRICAN LAW, PARTICULARLY FOR LIQUIDATED DEBTS.

Answer 1

In South African law, interest on liquidated debts is governed by both common law rules and legislative rules.

Common Law Rules:
1. The common law principle that governs mora interest is that the debtor is obliged to pay interest on a debt from the date that he is in mora (in default) until the debt is paid.
2. In terms of common law, mora interest is usually calculated at the rate of the legal rate of interest, which is currently set at 9.25% per annum.

Legislative Rules:
1. The National Credit Act (NCA) governs the charging of interest on credit agreements in South Africa.
2. The NCA sets out specific rules on the calculation and charging of interest, including limits on the interest rates that can be charged on credit agreements.
3. The NCA also requires creditors to provide debtors with information on the interest rates and charges applicable to the credit agreement.

It is important for creditors and debtors in South Africa to be aware of both the common law rules and the legislative rules that govern mora interest on liquidated debts, in order to ensure that they comply with the law and protect their rights.