Trade

Cheating in a sale

Q: My neighbour wanted to buy a cooking pot for R100. I told her not to buy it as I will get one for her for just R70. She agreed because she was saving R30 on the same pot. However, my intention was that I will buy the pot for just R55 and tell her that it cost R70. In this way, I will make R15 without telling her. Is this permissible?

Early settlement discount

Q: Please advise if the following type of transactions are valid, not valid or improper:

A business has an agreement with a supplier to pay after 30 days from date of delivery with a limit of R50 000.00. 

1. The business puts a condition on all purchase orders, that should the supplier request an earlier payment, it will incur a early settlement discount of x% on a daily basis.

2. At times the business goes over the limit of R50 000.00 , hence early payment now becomes binding in order for the supplier to deliver further orders, can the business in this situation claim the x% early settlement discounts.