Legal Costs and Interest Quiz
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Questions and Answers

What is the current interest rate prescribed by the Prescribed Rate on Interest Act for unliquidated claims?

  • 8.00%
  • 7.00% (correct)
  • 6.50%
  • 5.00%

Interest on claims may exceed the capital amount according to the 'in duplum' rule.

False (B)

What is one of the components of a civil judgment?

  • It commands a party to comply with the court's order. (correct)
  • It can be enforced through criminal charges.
  • It can only settle financial disputes.
  • It represents a decision made exclusively for the plaintiff.

When does interest run for a claim as per Section 2A of the Act?

<p>From the date payment is claimed via service on debtor of a demand or summons.</p> Signup and view all the answers

A judgment for absolution can only be granted to the defendant.

<p>False (B)</p> Signup and view all the answers

In a legal context, the term 'mora ex re' refers to the date ________ for performance.

<p>agreed upon</p> Signup and view all the answers

Match the cost types with their descriptions:

<p>Party &amp; party = Costs paid by the losing party to the winning party Attorney &amp; client = Costs charged by the attorney to their client Attorney &amp; own client = Costs charged by the attorney to themselves De bonis propriis = Costs paid from the attorney's own funds</p> Signup and view all the answers

What must a defendant demonstrate for the court to favor a judgment in his/her favor?

<p>Probabilities favor the defendant.</p> Signup and view all the answers

Rescission of judgment can occur when there is a 'reasonable explanation for ______'.

<p>default</p> Signup and view all the answers

Match the following terms with their definitions:

<p>Interest = Cost incurred on a borrowed sum that can be claimed in money disputes Wilful default = Deliberate choice not to defend an action Absolution = Judgment where no party is favored due to lack of evidence Rate of Interest = Agreed percentage for financial dues in contracts</p> Signup and view all the answers

Flashcards

Judgment: Command

This is a command delivered by the court to ensure compliance with its order.

Judgment: Settlement

This aspect of judgment defines the rights and obligations of all parties involved in the case.

Judgment: Absolution

A judgment that may be granted in favor of either the plaintiff or the defendant at the close of the plaintiff's case.

Judgment: Defendant's favor

If the defendant proves that the probabilities favor them, the court may grant judgment in their favor. This is done when the plaintiff has failed to prove their case.

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Interest on Judgment Capital

Interest on the judgment capital continues to accrue periodically, even if the defendant is making partial payments.

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Date from which Interest Runs

The date from which a debtor is legally obligated to pay interest. It usually coincides with the date they are put in default, either due to a missed payment deadline (mora ex re) or a demand for payment (mora ex persona).

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Prescribed Rate on Interest

The legal rate applied to claims where the interest rate hasn't been agreed upon. This rate is currently set by the Prescribed Rate on Interest Act 55/1975.

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The 'in duplum' Rule

This rule prevents interest from exceeding the original principal amount owed. It acts as a safety net to prevent an excessive build-up of interest.

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Legal Costs

The costs associated with a legal case, including fees for attorneys and court disbursements. They are usually awarded to the winning party, but can be reduced or denied based on the specific circumstances.

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After Judgment Costs

Costs awarded after a judgment has been made. These costs are itemized and then reviewed and verified by a court official in a process known as taxation.

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Study Notes

Interest on Unliquidated Claims

  • Interest runs from the date when a claim becomes liquid.
  • This happens when the court decides on the merits of the case.

Interest

  • Section 2A of the Act determines interest runs from the date of service of the summons.
  • The earliest date of service or the date the debt becomes due
  • Interest may never exceed the capital amount.
  • Various rules apply to costs
  • The winner gets costs, but sometimes the behaviour of the conduct may affect who gets costs.
  • Read the prescribed sections.

Costs of the Cause

  • Interim cost orders may be granted but not executed immediately in MCs.
  • In HC, interim cost orders can be executed immediately.
  • Costs of the cause - interlocutory matters - no order of costs, each party pays their own costs.
  • Costs to be reserved - interlocutory matters.
  • Must be able to describe these costs order and apply correctly.

Types of Costs

  • Party & Party
  • Attorney & Client
  • Attorney & own client
  • De bonis propris
  • After judgement - bill of costs to taxation.

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Description

Test your knowledge on legal costs and the calculation of interest on unliquidated claims. This quiz covers key concepts including when interest begins to run, types of legal costs, and applicable court rules regarding costs. Ensure you're well-versed in the nuances of legal fees and interest regulations.

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