MRL3701 PORTFOLIO MEMO - MAY/JUNE 2023 - SEMESTER 1 - UNISA - (DETAILED ANSWERS WITH FOOTNOTES - DISTINCTION GUARANTEED!)
Question 1 1.1 Explain the purpose of a sequestration order. (5) 1.2 “A sequestration order may not be granted if a debtor has only one creditor and there are not e...
Tutors you can trust. Voted “BEST
SELLING” memos for the year 2021/2022.
MRL3701
Insolvency Law
PORTFOLIO MEMO
SEMESTER 1 - 2023
UNIQUE NUMBER: -
Due Date: - 10th June 2023
Includes Footnotes and/or Bibliography
QUESTION PREVIEW
FULLY REFERENCED WITH
FOOTNOTES & A BIBLIOGRAPHY
WORD DOCUMENT AVAILABLE!
DISTINCTION GUARANTEED!!!
Disclaimer
Extreme care has been used by our Tutors to draft this document, however the contents are provided “as is” without any representations
or warranties, express or implied. This document is to be used for comparison, research and reference purposes ONLY. No part of this
document may be reproduced, resold or transmitted in any form or by any means without prior written permission from the Author. –
LLB EXAMPACKS & TUTORIALS.
1.1 Explain the purpose of a sequestration order. (5)
1.2 “A sequestration order may not be granted if a debtor has only one creditor and there
are not enough assets to cover the costs of sequestration.” Indicate whether this
statement is true or false, and then provide the reasons for your answer. (5)
1.3 David approaches you for advice. He informs you that his brother, Samuel, owes him
R15 000 for painting services rendered by his company. David explains to you that
despite various attempts to get Samuel to pay his debts, he has yet to make any
payment. David is especially upset because he has heard a rumour that Samuel owes
money to several people, amongst them a mutual best friend, Lenny. Lenny informed
David that Samuel wrote him a letter stating that he is unable to pay his debts to him
(Lenny) and asked in the letter whether they could make arrangements to pay him back
in instalments. David now wants to know from you whether you can assist him to apply
for the compulsory sequestration of Samuel‘s estate. Explain the conduct above and
refer to relevant legislation. (10)
1.4 Critically discuss Harksen v Lane 1998 (1) SA 300 (CC). (10)
1.5 Explain how section 27 of the Insolvency Act 24 of 1936 has the potential to violate
section 9(3) of the Constitution. (10)
1.6 Critically discuss Sarrahwitz v Maritz NO and Another 2015 (4) SA 491 (CC). (10)
TOTAL QUESTION 1: [50]
, CONFIDENTIAL
8 of 9
MRL3701
May/June 2023
Question 2
2.1 Explain the difference between a secured claim and a preferent claim. (10)
2.2 Rachel is an insolvent. She very much wishes to stand as a candidate in the upcoming
municipal elections for the SAD party. Her trustee is of the opinion that she should not
begin her political career at this stage. Explain whether Rachel’s trustee may interfere
with her intended political career. (5)
2.3 What must a plaintiff prove to succeed in bringing the actio Pauliana action? (5)
2.4 The Master may, under certain circumstances, remove a trustee from office. Name and
discuss these instances. (5)
TOTAL QUESTION 2: [25]
Question 3
3.1 Critically discuss the important issues the court had to consider regarding the abuse of
the sequestration process in Ex Parte Snooke 2014 (5) SA 426 (FB). (10)
3.2 Daniel’s estate was sequestrated in 2022. His concurrent creditors received no dividend
and even had to pay contributions. Daniel has not yet been rehabilitated. He has just
won a motorcar to the value of R250 000 in a competition. The trustee of Daniel’s
insolvent estate has heard about his good fortune and claims delivery of the car. Explain
whether Daniel has to deliver the car to the trustee. (5)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LLBExampacksAndTutorials. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $23.57. You're not tied to anything after your purchase.
