Your question
What is my right as consumer to a supplier that is threatening to take back the product out of his own when we already paid for it?
If this was an instalment sale or other credit agreement, the supplier’s entitlement to recover the product depends on the agreement’s terms, including whether you failed to comply with a term. An instalment sale may provide that ownership does not pass merely on delivery and that the seller may seek return if the purchaser breaches a term. The supplied provisions do not establish a general right for a supplier to take back goods simply because they choose to do so after the price has been paid. 5
Where a credit grantor recovers goods without a court order, and you did not terminate the agreement yourself, you may within 30 days pay any amounts then lawfully due and unpaid, plus reasonable return costs, and require the goods to be returned and your agreement reinstated. The credit grantor must return the goods in those circumstances. 6
The Electronic Transactions Act gives the consumer, not the supplier, a seven-day cancellation right for qualifying electronic purchases of goods, subject to stated exclusions. It does not create a supplier’s right to cancel or repossess goods after payment. 3
If the supplier alleges non-payment, ask for the written agreement, a statement identifying the allegedly unpaid amount, and the contractual term relied upon. The supplied sources do not determine ownership or repossession rights for a fully paid cash sale outside a credit agreement, so they cannot confirm whether the threatened action is lawful on the facts given. 56
Verified sources
Where this answer comes from
Banking Institutions Act 13 of 2023-Regulations 1986-2747
the termination of that transaction become the owner of those goods or after such expiry or termination retain the possession or use or enjoyment of those goods;
Insolvency Act 24 of 1936
(1) If a person, before the sequestration of his estate, by virtue of a contract of purchase and sale which provided for the payment of the purchase price upon delivery of the property in question to the purchaser, received any movable property without paying the purchase price in full, the seller may, after the sequestration of the purchaser’s estate, reclaim that property if within ten days after delivery thereof he has given notice in writing to the purchaser or to the trustee of the purchaser’s insolvent estate or to the Master, that he reclaims the property: Provided that if the trustee disputes the seller’s right to reclaim the property, the seller shall not be entitled to reclaim it,...
Electronic Transactions Act 4 of 2019
(1) Subject to subsection (5), a consumer is entitled to cancel without reason and without penalty any transaction for the supply - (a) of goods within seven days after the date of the receipt of the goods; or (b) of services within seven days after the date of the conclusion of the agreement. (2) The only charge that may be levied on the consumer is the direct cost of returning the goods. (3) If payment for the goods or services has been effected prior to a consumer exercising a right referred to in subsection (1), the consumer is entitled to a full refund of that payment, which refund must be made within 30 days of the date of cancellation. (4) This section is not construed as prejudicing...
Value-Added Tax Act 10 of 2000
(b) the last day prescribed by this Act for furnishing the return for the tax period during which that supply would, but for this subsection, have been made. (4) Except as otherwise provided in subsection (5), a supply of goods under a credit agreement shall be deemed to take place at the time the goods are delivered or the time any payment in respect of that supply is received, whichever is the earlier. (5) A supply subject to section 13 of the Credit Agreements Act, 1980 (Act No. 75 of 1980), shall be deemed to take place at the beginning of the day following the last day on which the credit receiver may exercise the right under the said Act to terminate the agreement. (6) A supply under a...
Credit Agreements Act 75 of 1980
“instalment sale transaction” means a transaction in terms of which - (a) goods are sold by the seller to the purchaser against payment by the purchaser to the seller of a stated or determinable sum of money at a stated or determinable future date or in whole or in part in instalments over a period in the future; and (b) the purchaser does not become the owner of those goods merely by virtue of the delivery to or the use, possession or enjoyment by him thereof; or (c) the seller is entitled to the return of those goods if the purchaser fails to comply with any term of that transaction;
Credit Agreements Act 75 of 1980
(1) If the credit grantor, otherwise than by order of court, has recovered possession of any goods to which any credit agreement relates, the credit receiver, except where he has himself terminated the credit agreement, shall be entitled, against payment within a period of 30 days after the credit grantor recovered possession of such goods of the amounts, if any, which are then claimable and unpaid in terms of the credit agreement and of the reasonable costs incurred by the credit grantor in connection with the return of those goods, to the return of those goods at the place of business of the credit grantor or, if the credit receiver so requests or the credit grantor has no place of busines...
We paid part of it, the supplier told us not to pay until it works correctly.
If the supplier told you not to make further payments until the product works correctly, the supplied sources do not establish whether that instruction changes your payment obligations or whether it prevents the supplier from alleging default. That depends on the agreement’s terms and the evidence of what the supplier told you. 14
For an instalment-sale credit agreement, a seller may have a right to return of the goods if the purchaser fails to comply with a term of the transaction. However, section 17 contemplates the credit grantor instituting court proceedings for return of the goods, and permits the court to set conditions concerning the outstanding balance and the value of the returned goods. 16
The supplied sources do not state that a supplier may take the product back merely because part of the price remains unpaid where the supplier instructed the purchaser to stop paying pending repair. 146
Verified sources
Where this answer comes from
Credit Agreements Act 75 of 1980
“instalment sale transaction” means a transaction in terms of which - (a) goods are sold by the seller to the purchaser against payment by the purchaser to the seller of a stated or determinable sum of money at a stated or determinable future date or in whole or in part in instalments over a period in the future; and (b) the purchaser does not become the owner of those goods merely by virtue of the delivery to or the use, possession or enjoyment by him thereof; or (c) the seller is entitled to the return of those goods if the purchaser fails to comply with any term of that transaction;
Banking Institutions Act 13 of 2023-Regulations 1986-2747
“instalment sale” means a transaction in terms of which - (a) goods are sold by the seller to the purchaser against payment by the purchaser to the seller of a stated or determinable sum of money at a stated or determinable future date either in whole or in part in instalments over a period in the future; and (b) the purchaser does not become the owner of those goods merely by virtue of the delivery to or the use, possession or enjoyment by him thereof; or (c) the seller is entitled to the return of those goods if the purchaser fails to comply with any term of that transaction, and also includes hire-purchase and suppressive sale transactions but excludes leasing transactions;
Electronic Transactions Act 4 of 2019
(1) Subject to subsection (5), a consumer is entitled to cancel without reason and without penalty any transaction for the supply - (a) of goods within seven days after the date of the receipt of the goods; or (b) of services within seven days after the date of the conclusion of the agreement. (2) The only charge that may be levied on the consumer is the direct cost of returning the goods. (3) If payment for the goods or services has been effected prior to a consumer exercising a right referred to in subsection (1), the consumer is entitled to a full refund of that payment, which refund must be made within 30 days of the date of cancellation. (4) This section is not construed as prejudicing...
Credit Agreements Act 75 of 1980
agreement or if any other contingency occurs which in terms of such credit agreement entitles the credit grantor to take action against the credit receiver, and such credit agreement is not terminated or rescinded, such credit receiver shall, subject to the provisions of the Limitation and Disclosure of Finance Charges Act, 1968 (Act No. 73 of 1968), not be bound to make any payment or to the performance of any other act whereby the credit grantor would be placed in a better financial position than that in which he would have been if the credit receiver had carried out the obligation in question or if such contingency had not occurred. [Act 73 of 1968 has been re -named the Usury Act.] Right...
Sale of Land on Instalments Act 72 of 1971
(1) Every purchaser of immovable property who has under agreement of purchase undertaken to pay the purchase price thereof in instalments at specified periods and who has paid to the vendor of the property in such instalments not less than fifty per cent of the agreed purchase price shall be entitled to demand from the vendor transfer of that property on condition that, simultaneously with the registration of transfer, there shall be registered in favour of the vendor a first mortgage bond over the said property to secure the balance of the purchase price and interest in terms of the agreement of purchase. (2) If the seller is unable or fails or refuses to give such transfer as soon as may b...
Credit Agreements Act 75 of 1980
(1) In any proceedings instituted by a credit grantor for the return of goods to which a credit agreement which is an instalment sale transaction relates, the court may, without derogating from any other power, make an order providing for the return of such goods, or any part thereof, to the credit grantor on condition that - (a) the amount then still owing by the credit receiver in terms of that credit agreement be reduced by an amount equal to the value of the goods to be so returned to the credit grantor; or (b) if such value exceeds the amount then still owing as aforesaid, the credit grantor shall pay to the credit receiver an amount equal to the difference between such value and the am...
Can we ask for the money back we partly paid?
You can ask for a refund, but the supplied sources only give a clear statutory refund right for certain electronic transactions. Section 35 provides a full refund if the consumer cancels a qualifying electronic purchase of goods within seven days of receiving them, subject to exclusions. 1
For an electronic sale, you may also cancel within 14 days after receiving the goods if the supplier did not provide the required information or opportunity to review, correct mistakes, and withdraw before ordering. On that cancellation, the supplier must refund all payments, including the direct return cost. 5
However, the supplied text states that Chapter 4 of the Electronic Transactions Act, which contains these consumer-protection provisions, is not yet in force. Therefore, the supplied sources do not establish a currently enforceable statutory right to recover your part-payment because the product does not work or because the supplier told you to stop paying. 4
Verified sources
Where this answer comes from
Electronic Transactions Act 4 of 2019
(1) Subject to subsection (5), a consumer is entitled to cancel without reason and without penalty any transaction for the supply - (a) of goods within seven days after the date of the receipt of the goods; or (b) of services within seven days after the date of the conclusion of the agreement. (2) The only charge that may be levied on the consumer is the direct cost of returning the goods. (3) If payment for the goods or services has been effected prior to a consumer exercising a right referred to in subsection (1), the consumer is entitled to a full refund of that payment, which refund must be made within 30 days of the date of cancellation. (4) This section is not construed as prejudicing...
Credit Agreements Act 75 of 1980
“instalment sale transaction” means a transaction in terms of which - (a) goods are sold by the seller to the purchaser against payment by the purchaser to the seller of a stated or determinable sum of money at a stated or determinable future date or in whole or in part in instalments over a period in the future; and (b) the purchaser does not become the owner of those goods merely by virtue of the delivery to or the use, possession or enjoyment by him thereof; or (c) the seller is entitled to the return of those goods if the purchaser fails to comply with any term of that transaction;
Banking Institutions Act 13 of 2023-Regulations 1986-2747
“instalment sale” means a transaction in terms of which - (a) goods are sold by the seller to the purchaser against payment by the purchaser to the seller of a stated or determinable sum of money at a stated or determinable future date either in whole or in part in instalments over a period in the future; and (b) the purchaser does not become the owner of those goods merely by virtue of the delivery to or the use, possession or enjoyment by him thereof; or (c) the seller is entitled to the return of those goods if the purchaser fails to comply with any term of that transaction, and also includes hire-purchase and suppressive sale transactions but excludes leasing transactions;
Electronic Transactions Act 4 of 2019
(3) If a person who has made an input error as contemplated in subsection (2), has paid for any goods or services prior to exercising a right referred to in that subsection, that person is entitled to a full refund of such payment, which refund must be made within 30 days of the date of cancellation. (4) Nothing in this section affects the application of any rule of law that may govern the consequences of any errors made during the formation or performance of the type of contract in question other than an input error that occurs in the circumstances referred to in subsection (2). CHAPTER 4 CONSUMER PROTECTION [This chapter is not yet in force.]
Electronic Transactions Act 4 of 2019
(1) A supplier offering goods or services for sale, for hire or for exchange by way of an electronic transaction must make the following information available to consumers on the web site where such goods or services are offered or if it is not offered on a website in the data message in which it is offered - (a) its full contact details, including its place of business, e-mail addresses and telefax number; (b) a sufficient description of the main characteristics of the goods or services offered by that supplier to enable a consumer to make an informed decision on the proposed electronic transaction; (c) the full price of the goods or services, including transport costs, taxes and any other...
Electronic Transactions Act 4 of 2019
(1) The supplier must execute the order within 30 days after the day on which the supplier received the order, unless the parties have agreed otherwise. (2) Where a supplier has failed to execute the order within 30 days or within the agreed period the consumer may cancel the agreement with seven days written notice. (3) If a supplier is unable to perform in terms of the contract on the grounds that the goods or services ordered are unavailable, the supplier must immediately notify the consumer of this fact and refund any payments within 30 days after the date of such notification. Applicability of foreign law