Civil Procedure

Mora Interest

Interest that accrues on a debt from the date of default (mora) until payment, at the statutory or agreed rate. It is separate from contractual interest and compensates for late payment.

Legal Definition

Mora (Latin: delay) refers to the debtor being in default. Once in mora, the debtor owes mora interest on the outstanding amount. The Prescribed Rate of Interest Act sets the default rate of mora interest (currently 11.25% per annum for debts not governed by another rate). Courts routinely award mora interest in judgment debts.

📖 Constitutional / Statutory Basis: Section 34 (access to courts)

Practical Example

A court awards you R100,000 in damages for breach of contract. The defendant delays payment. Mora interest of 11.25% p.a. accrues from the date of judgment until they pay.

Frequently Asked Questions

When does a debtor go into mora in South Africa?

A debtor goes into mora either on a fixed date agreed in the contract (mora ex re) or after being formally placed in mora by a demand or summons from the creditor (mora ex persona).

Is mora interest the same as the interest rate in the contract?

Not necessarily. Contractual interest applies during the loan. Mora interest applies after default. If the contract is silent about a post-default rate, the Prescribed Rate of Interest Act rate (currently 11.25% p.a.) applies.

Related Terms

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