MRL3701 Assignment Semester 1 2024. 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. b. Du...
, 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. b. During the period of
insolvency, an insolvent is not allowed to acquire a new estate. 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. d. An insolvent who brings an action in the Magistrate’s Court is
obliged by Rule 62(1)(b) of the Magistrate’s Court Rules to give security for
the costs of the action if the defendant requests it. e. A debtor who has no
assets and only liabilities can surrender his estate. (5)
a. True. In community of property, spouses share ownership of their assets and
liabilities equally. Therefore, an act of insolvency committed by one spouse
affects the joint estate, making the guilty spouse insolvent.
b. False. During the period of insolvency, an insolvent may still acquire a new
estate. However, any assets acquired during this period may be included in the
insolvent estate and used to satisfy creditors' claims.
c. False. In many jurisdictions, a pension is often protected from being
included in the insolvent estate. This protection aims to provide some financial
security for the insolvent individual.
d. True. Rule 62(1)(b) of the Magistrate’s Court Rules typically requires an
insolvent who brings an action in the Magistrate’s Court to provide security for
the costs of the action if the defendant requests it. This is a measure to ensure
that the defendant is protected in case the plaintiff cannot cover the costs.
e. True. A debtor who has no assets and only liabilities can surrender his
estate. The surrender of the estate involves the debtor relinquishing whatever
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