Question
A man who is about to close down his business informs his creditors to uplift their respective stocks, for if they don't, they stand to lose considerably when his business is liquidated. The creditors have agreed. One creditor is now demanding from the debtor a 20% handling fee. Is this fee permissible?
Answer
In this case, the creditors are under duress. The circumstances had compelled them to uplift the goods. Creditors are not in the market to uplift stock which they have sold. The debtor in this case has put the creditors to difficulty, inconvenience and involved them in cost (the cost for uplifting the goods). If the uplifting of the goods was done by the creditor at his (the creditor's) expense, then the debtor is liable for these costs. This was not a normal purchase of goods. The person who has returned the goods is still indebted to the creditors for the amounts he owes them, i.e. the balance remaining after deducting the returned goods.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 21 No 08
- PDF page
- 5
Appears under Questions and Answers (approximate).