MRL3701 Assignment 1
(COMPLETE ANSWERS)
Semester 1 2026 - DUE 2
March 2026;
USER
, MRL3701 Assignment 1 (COMPLETE ANSWERS) Semester 1 2026 - DUE 2 March 2026;
Palesa and her best friend Mpho started a new restaurant business in 2023. Despite their
impressive culinary skills, the restaurant was not a success. Palesa lost a lot of money which she
had invested in the restaurant, leaving her in a dire financial situation. By 1 October 2025,
Palesa’s liabilities exceeded her assets by R1,8 million. Palesa presently owes a total of R2,4
million to various creditors. Her creditors include Lethabo to whom she owes R1,1 million. Over
the past few months Palesa has failed to pay many of her debts. This includes the debt of R1,1
million owed to Lethabo, which was due and payable on 15 January 2026. Lethabo has
discovered that Palesa had borrowed from her boyfriend, Andile, an amount of R900 000, which
Palesa had repaid in full on 31 January 2026. Lethabo is distressed that Palesa had repaid the
loan that she had obtained from her boyfriend, even though the amount was due and payable
only on 1 August 2026. whether, and on what basis (if any), the trustee of Palesa’s insolvent
estate would be able to recover the R900 000 paid by Palesa to Andile Palesa seems to have been
mindful that she was in financial difficulty and that her creditors could apply for the
sequestration of her estate at any time. Lethabo applies for the compulsory sequestration of
Palesa’s estate. Answer the following questions based on the facts given above
MRL3701 – MERGERS AND ACQUISITIONS LAW
ASSIGNMENT 1: UNDUE AND VOIDABLE PREFERENCES & COMPULSORY
SEQUESTRATION
Semester 1, 2026
Due Date: 2 March 2026
Institution: University of South Africa (UNISA)
TABLE OF CONTENTS
(COMPLETE ANSWERS)
Semester 1 2026 - DUE 2
March 2026;
USER
, MRL3701 Assignment 1 (COMPLETE ANSWERS) Semester 1 2026 - DUE 2 March 2026;
Palesa and her best friend Mpho started a new restaurant business in 2023. Despite their
impressive culinary skills, the restaurant was not a success. Palesa lost a lot of money which she
had invested in the restaurant, leaving her in a dire financial situation. By 1 October 2025,
Palesa’s liabilities exceeded her assets by R1,8 million. Palesa presently owes a total of R2,4
million to various creditors. Her creditors include Lethabo to whom she owes R1,1 million. Over
the past few months Palesa has failed to pay many of her debts. This includes the debt of R1,1
million owed to Lethabo, which was due and payable on 15 January 2026. Lethabo has
discovered that Palesa had borrowed from her boyfriend, Andile, an amount of R900 000, which
Palesa had repaid in full on 31 January 2026. Lethabo is distressed that Palesa had repaid the
loan that she had obtained from her boyfriend, even though the amount was due and payable
only on 1 August 2026. whether, and on what basis (if any), the trustee of Palesa’s insolvent
estate would be able to recover the R900 000 paid by Palesa to Andile Palesa seems to have been
mindful that she was in financial difficulty and that her creditors could apply for the
sequestration of her estate at any time. Lethabo applies for the compulsory sequestration of
Palesa’s estate. Answer the following questions based on the facts given above
MRL3701 – MERGERS AND ACQUISITIONS LAW
ASSIGNMENT 1: UNDUE AND VOIDABLE PREFERENCES & COMPULSORY
SEQUESTRATION
Semester 1, 2026
Due Date: 2 March 2026
Institution: University of South Africa (UNISA)
TABLE OF CONTENTS
