100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Summary law of insolvency: Effect of sequestration on legal position of insolvent R50,00   Add to cart
Quickly navigate to
Preview
  2.  
  3. University Of The Western Cape (UWC)
  4.  
  5. Law of insolvency

Summary

Summary law of insolvency: Effect of sequestration on legal position of insolvent
 247 views  0 purchase

Comprehensive notes summarised from Hockly's Insolvency Law 9th edition textbook.

Preview 1 out of 8  pages

Document information

  • No
  • Effect of sequestraion on legal position of insolvent
  • March 2, 2017
  • 8
  • 2016/2017
  • Summary

Subjects

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

More summaries for

All for this textbook (6)

Written for

All documents for this subject (22)

Seller

avatar-seller
Jennica1

Reviews received

Content preview

Topic 4: Effect of sequestration on the legal position of the insolvent

1. Introduction

- Sequestration of debtor’s estate imposes upon him a form of reduction in states
- This limits his
o Capacity to contract
o Earn a living
o Litigate and hold office

2. The ability of the solvent spouse to acquire property

S23(1) of Insolvency Act

- Property acquired by insolvent during sequestration goes into insolvent estate and will vest in
trustee
- Subject to provisions of s23 and s24, all property acquired by an insolvent will belong to his estate

3. The ability of a debtor to enter into contracts

S23(2) of Insolvency Act: Limitations

- Insolvency Act generally does not deprive debtor of his contractual capacity
- He thus retains a general capacity to make binding agreements


However, to protect creditors, the Act imposes certain restrictions on his capacity to contract

CATEGORY PROIBITED PROHIBITED, NOT PROHIBITED
AUTOMATICALLY UNLESS THE
TRUSTEE
CONSENTS
TYPE Contracts which Those that may Any other type of
dispose of estate affect the creditors contract
property in an adverse
manner.
AFFECT Voidable at the If trustee consents The insolvent
instance of the to contract it is cannot use
trustee, ex post valid and binding. If insolvency to
facto. Trustee can the insolvent enters escape liability. The
stand by contract or without permission Contract is valid
set it aside, of, or against the and binding.
following which, wishes of the
restitutio must occur trustee, it is
to restore the status voidable at the
quo ante. instance of the
trustee.



1

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

Quick and easy check-out

You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

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 this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Jennica1. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for R50,00. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

72042 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 14 years now

Start selling
R50,00
  • (0)
  Buy now