Insolvency Law MRL3701
Department of Mercantile Law
Assessment Semester 1 2025
Due date
5/13/2025
Assignment 02
Open for submission :06 may 2025
All question answered
Two options are provided to choose between and avoid plagiarism
Add names and student no , submit all work done for you
Distinction guarantee 100%
, QUESTION:
Kabelo’s estate was sequestrated in 2021 and he has not yet been rehabilitated.
Dennis was appointed as the trustee of the insolvent estate. The assets in
Kabelo’s estate were insufficient to cover the sequestration costs. As a result, all
his creditors had to pay a contribution and the concurrent creditors did not
receive dividends.
Kabelo recently won a motor vehicle worth R200 000 in a competition which
was run by the Mall of South Africa. When Dennis heard of the news, he
claimed delivery of the car.
Kabelo really likes the car and wants to keep the car. Kabelo comes to you for
advice. He wants to know whether he has to deliver the car to the trustee or if
there are ways he could keep the car. By referring to relevant legislation, advise
Kabelo.
Option1 answer
Legal Advice to Kabelo:
The issue at hand concerns whether Kabelo, an insolvent individual, is entitled to
retain ownership of a motor vehicle won in a competition, or whether he must
deliver it to the trustee of his insolvent estate. This matter is governed by the
Insolvency Act 24 of 1936, which regulates the legal consequences of
sequestration in South Africa.
1. Ownership of the Motor Vehicle
According to Section 20(1)(a) of the Insolvency Act, when a person’s estate is
sequestrated, their estate vests in the trustee upon appointment. This includes all
Department of Mercantile Law
Assessment Semester 1 2025
Due date
5/13/2025
Assignment 02
Open for submission :06 may 2025
All question answered
Two options are provided to choose between and avoid plagiarism
Add names and student no , submit all work done for you
Distinction guarantee 100%
, QUESTION:
Kabelo’s estate was sequestrated in 2021 and he has not yet been rehabilitated.
Dennis was appointed as the trustee of the insolvent estate. The assets in
Kabelo’s estate were insufficient to cover the sequestration costs. As a result, all
his creditors had to pay a contribution and the concurrent creditors did not
receive dividends.
Kabelo recently won a motor vehicle worth R200 000 in a competition which
was run by the Mall of South Africa. When Dennis heard of the news, he
claimed delivery of the car.
Kabelo really likes the car and wants to keep the car. Kabelo comes to you for
advice. He wants to know whether he has to deliver the car to the trustee or if
there are ways he could keep the car. By referring to relevant legislation, advise
Kabelo.
Option1 answer
Legal Advice to Kabelo:
The issue at hand concerns whether Kabelo, an insolvent individual, is entitled to
retain ownership of a motor vehicle won in a competition, or whether he must
deliver it to the trustee of his insolvent estate. This matter is governed by the
Insolvency Act 24 of 1936, which regulates the legal consequences of
sequestration in South Africa.
1. Ownership of the Motor Vehicle
According to Section 20(1)(a) of the Insolvency Act, when a person’s estate is
sequestrated, their estate vests in the trustee upon appointment. This includes all
