MRL3701 - STUDY UNIT 14 - Impeachable Dispositions - Introduction, And Dispositions Made Not For Value Exam Questions with Correct Answers

MEANING OF DISPOSITION Correct Answer S2 - term "disposition" means 'any transfer or abandonment of rights to property and includes a ale, lease, mortgage, pledge, delivery, payment, release, compromise, donation, or any other contract therefor, but doe not include a disposition in compliance with an order of the court' PROPERTY Correct Answer S2 means movable or immovable property, wherever situated within the Republic, includes a contingent interest in property other than the contingent interest of a fideicommissary heir or lagatee Definition includes foreign assets; the purpose of the expression 'wherever situated within the Republic' is not to limit the operation of a sequestration order to property within the Republic but to extend it to property beyond the territorial limits of the court which granted the order hence 'property' includes property situated outside the Republic. DISPOSITION Correct Answer includes a contract providing for the alienation or abandonment of rights to property. Sometimes referred to as an 'uncompleted' disposition. Contract of suretyship, although not specifically mentioned in the definition, is a disposition, since it is a contract which provides for a payment by the debtor. FURTHER TRANSACTIONS WHICH HAVE BEEN HELD TO BE DISPOSITIONS ARE: Correct Answer 1 Issuing of a cheque by insolvent (both where bank account is in credit and where he has been granted overdraft facilities; 2. a contract between the insolvent and a part indebted to him in terms of which the latter is required to pay the amount of the debt to a creditor of the insolvent. 3. an arrangement by which a party who has agreed to lend to the insolvent is required to pay the amount of the loan into the bank account of a third person for the purpose of channeling the amount to a creditor of the insolvent THE TERM DISPOSITION DOES NOT INCLUDE Correct Answer a disposition made in compliance with an order of court However this exclusion does not apply if the creditor obtained the court order by fraud or by collusion with the insolvent and with the intention of prejudicing other creditors