Insolvency Law
MRL3701
Department of Mercantile Law
Assessment 1 Questions
Semester 1 – 2024
Written by
Camecia Cass
BUY ME TO VIEW THE REST OF THE
ANSWER
, 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.
Extract from Hockly’s Insolvency Law
False, an act of insolvency committed by a spouse to a marriage in
community of property operates as an act of insolvency by both
spouses and, accordingly, is a good ground for sequestration of the
joint estate (Standard Bank of SA Ltd v Sewpersadh & another 2005 (4)
SA 148 (C) 152-3).1
Paraphrased Options:
Option 1:
False, according to Standard Bank of SA Ltd v Sewpersadh and others 2005
(4) SA 148 (C) 152-3, a spouse's act of insolvency within a community of
property marriage functions as an act of insolvency by both spouses and, as
such, is a valid reason for the joint estate to be sequestrated.
Option 2:
False, a spouse in community property marriage who commits an act of
insolvency serves as a good basis for sequestration of the joint estate
because it functions as an act of insolvency by both spouses (Standard Bank
of SA Ltd v Sewpersadh and another 2005 (4) SA 148 (C) 152-3).
Option 3:
1
Robert Sharrock, Kathleen van Der Linde and Alastair Smith Hockly’s Insolvency Law (9 edn, 2012,
Juta & Co) 36.
MRL3701
Department of Mercantile Law
Assessment 1 Questions
Semester 1 – 2024
Written by
Camecia Cass
BUY ME TO VIEW THE REST OF THE
ANSWER
, 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.
Extract from Hockly’s Insolvency Law
False, an act of insolvency committed by a spouse to a marriage in
community of property operates as an act of insolvency by both
spouses and, accordingly, is a good ground for sequestration of the
joint estate (Standard Bank of SA Ltd v Sewpersadh & another 2005 (4)
SA 148 (C) 152-3).1
Paraphrased Options:
Option 1:
False, according to Standard Bank of SA Ltd v Sewpersadh and others 2005
(4) SA 148 (C) 152-3, a spouse's act of insolvency within a community of
property marriage functions as an act of insolvency by both spouses and, as
such, is a valid reason for the joint estate to be sequestrated.
Option 2:
False, a spouse in community property marriage who commits an act of
insolvency serves as a good basis for sequestration of the joint estate
because it functions as an act of insolvency by both spouses (Standard Bank
of SA Ltd v Sewpersadh and another 2005 (4) SA 148 (C) 152-3).
Option 3:
1
Robert Sharrock, Kathleen van Der Linde and Alastair Smith Hockly’s Insolvency Law (9 edn, 2012,
Juta & Co) 36.
