Exam (elaborations)
MRL3701 Assignment 1 Seemester 1 2024
- Course
- MRL3701 (MRL3701)
- Institution
- University Of South Africa (Unisa)
MRL3701 Assignment 1 Seemester 1 2024
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MRL3701ASSIGNMENT 1
DUE DATE: 12 MARCH 2024
, Assessment 01:
Question 1: (5 marks)
Indicate whether the following statements are TRUE (T) or FALSE (F) and provide a
reason or explanation for your answer.
a. An act of insolvency committed by a spouse married in community of
property operates as an act of insolvency by the guilty spouse.
FALSE
In the Standard Bank of SA Ltd v Sewpersadh and Another case, the court determined
that if one spouse in a marriage in community of property commits an act of insolvency,
it is regarded as an act of insolvency for both spouses. This ruling establishes a valid
basis for the sequestration of the joint estate. Furthermore, after the dissolution of the
marriage through divorce, it also allows for the sequestration of the other spouse's
separate estate. The significance of this legal precedent, especially in the realm of
insolvency within marriages in community of property, becomes apparent when
examining the details of the ruling, including its implications and the legal rationale
involved.
b. During the period of insolvency, an insolvent is not allowed to acquire a new
estate.
FALSE
Contrary to the assertion, the fact that certain properties do not become the possession
of the trustee implies that the insolvent individual retains the capacity to obtain a new
estate while undergoing insolvency. This new estate can be held with a title opposing
that of the trustee. Courts have confirmed that the estate acquired after the
commencement of insolvency can also be subjected to sequestration.
c. The insolvent may recover for his own benefit any pension to which he may
be entitled as this forms part of property that does not fall into the insolvent
estate.
TRUE
Section 23(9) grants the insolvent the entitlement to reclaim, for personal gain and to the
exclusion of the estate, compensation or fees for work performed or professional
services provided post-sequestration. Nevertheless, Section 23(5) conditions this
allowance by asserting that the trustee has a right to any funds obtained (or anticipated)
by the insolvent in the pursuit of their profession, vocation, or employment, as deemed
surplus by the Master and unnecessary for the insolvent's and their dependents' support.
In combination, these provisions establish the parameters for the income an insolvent
may acquire.
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