Welcome back folks – the next reason you should have comprehensive T&C is interest – If I want to add a claim for interest to my main claim, what rate will apply and for what period?
The Prescribed Rate of Interest Act determines that figure which is currently 10% (Ten percent). If your claim arose in 2015, the court will apply the rate which was in force at the commencement of the action e.g. 2020, not the varied rates over the period (which is amended from time to time). The interest will start running from the date summons is served or the date upon which a letter of demand is served on the party in breach. However BOTH of these can be changed to the benefit of the plaintiff in its T&C: (1) The T&C can specify a much higher rate and (2) can also indicate that interest will run from the date of default i.e. the date the contract was breached which may be long before summons or a letter of demand is served.
More about the alternative dispute resolution (‘ADR’) next time.
Copyright Adv Louis Nel t/a louis-THE-lawyer
DISCLAIMER – Each case depends on its own facts & merits – the above does not constitute advice – independent advice should be obtained in all instances
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