MRL3701 Study Unit 9 Uncompleted Contracts and Legal Proceedings Not Yet Finalized Questions with Correct Answers

CONTRACT COMPLETED BY INSOLVENT BUT NOT BY OTHER PARTY Correct Answer If Insolvent Has Carried Out His Side Of The Contract And Only Other Party Needs To Perform, The Right To That Performance Is An Asset In The Insolvent Estate And Vests In The Trustee. If Right Is One To Payment The Trustee May Enforce It In Same Manner As Other Debts Owed To The Insolvent Estate. If Right Is To Some The Other Performance Trustee May Either Sell The Right Along With The Other Estate Assets Or Enforce Performance And Then Sell The Subject Matter Of The Performance Right To Performance Held By The Estate Lapses If The Other Party In Good Faith, And Without Knowledge Of The Sequestration, Performs To The Insolvent. Right To Compensation Under An Insurance Policy Indemnifying The Insolvent Against Liability To Third Parties Vests In The Third Part Concerned, Who May Recover What The Insolvent Owes Him Directly From The Insureer In Terms Of S156. CONTRACT NOT COMPLETED BY INSOLVENT - CONTINUANCE OF CONTRACT Correct Answer As General Rule, Sequestration Does Not Suspend Or Put An End To The Contract CONTRACT NOT COMPLETED BY INSOLVENT - THE TRUSTEE'S ELECTION Correct Answer Trustee (Or Provisional Trustee) Generally Has An Election To Perform In Terms Of The Contract Or Not. Only "Power" Which The Trustee's Office Gives Him Is To Exclude The Right Of The Other Party To Invoke The Remedy Of Specific Performance. Trustee Is Given This Power So That He May Ac Tin The Interest Of The Concursus Creditorium. Trustee Must Obtain And Abide By The Instructions Of General Body Of Creditors On The Matter, And That He May Not Completely Adopt A Course That Is Prejudicial To The Interest Of The Concursus. In Each Case It Must Be Decided By A Process Of Inference, The Conclusion Drawn To Be Consistent With All The Proven Facts.