MRL3701
Assignment 1 Semester 2 2025
2 2025
Unique Number:
Due date: 12 August 2025
QUESTION 1
a. (2 ANSWERS PROVIDED)
The purpose of a sequestration order is to ensure the fair and orderly distribution of a
debtor’s assets among all creditors when the debtor can no longer pay their debts. Once the
court grants a sequestration order, a legal process called concursus creditorum begins,
which means all creditors come together to share in the proceeds of the debtor’s estate. This
process replaces individual legal actions by creditors, ensuring that no creditor receives
unfair preference over others.
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +27 81 278 3372
QUESTION 1
a. (2 ANSWERS PROVIDED)
The purpose of a sequestration order is to ensure the fair and orderly distribution of a
debtor’s assets among all creditors when the debtor can no longer pay their debts.
Once the court grants a sequestration order, a legal process called concursus
creditorum begins, which means all creditors come together to share in the proceeds
of the debtor’s estate. This process replaces individual legal actions by creditors,
ensuring that no creditor receives unfair preference over others.
The court will only grant a sequestration order if it can be shown that there will be a
benefit to the creditors. If there are no assets or only one creditor, the court will
usually refuse the application, as the process would be pointless and wasteful.
Through sequestration, the debtor also loses control over their estate and may not
take on further debts. The overall goal is to protect and balance the interests of all
creditors (Smith, Van der Linde & Calitz, 2022).
OR
The main purpose of a sequestration order is to ensure a fair and orderly distribution
of a debtor’s assets among all their creditors. When a person is unable to pay their
debts, sequestration allows the court to take control of their estate and appoint a
trustee who will collect and sell the debtor’s assets. The money from the sale is then
used to pay off creditors in a fair and equal way, depending on the amount owed and
the type of claim each creditor has. This process helps prevent one creditor from
being unfairly favoured over others. The court usually only grants a sequestration
order when there is more than one creditor, because it is meant to manage situations
involving competing creditors. If there is only one creditor, that creditor must use
the ordinary court procedures to claim and enforce payment from the debtor (Smith,
Van der Linde & Calitz, 2022).
b. (2 ANSWERS PROVIDED)
Thandeka and Owen, although married, are married out of community of property,
meaning they each have their own separate estate. In terms of South African
Assignment 1 Semester 2 2025
2 2025
Unique Number:
Due date: 12 August 2025
QUESTION 1
a. (2 ANSWERS PROVIDED)
The purpose of a sequestration order is to ensure the fair and orderly distribution of a
debtor’s assets among all creditors when the debtor can no longer pay their debts. Once the
court grants a sequestration order, a legal process called concursus creditorum begins,
which means all creditors come together to share in the proceeds of the debtor’s estate. This
process replaces individual legal actions by creditors, ensuring that no creditor receives
unfair preference over others.
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +27 81 278 3372
QUESTION 1
a. (2 ANSWERS PROVIDED)
The purpose of a sequestration order is to ensure the fair and orderly distribution of a
debtor’s assets among all creditors when the debtor can no longer pay their debts.
Once the court grants a sequestration order, a legal process called concursus
creditorum begins, which means all creditors come together to share in the proceeds
of the debtor’s estate. This process replaces individual legal actions by creditors,
ensuring that no creditor receives unfair preference over others.
The court will only grant a sequestration order if it can be shown that there will be a
benefit to the creditors. If there are no assets or only one creditor, the court will
usually refuse the application, as the process would be pointless and wasteful.
Through sequestration, the debtor also loses control over their estate and may not
take on further debts. The overall goal is to protect and balance the interests of all
creditors (Smith, Van der Linde & Calitz, 2022).
OR
The main purpose of a sequestration order is to ensure a fair and orderly distribution
of a debtor’s assets among all their creditors. When a person is unable to pay their
debts, sequestration allows the court to take control of their estate and appoint a
trustee who will collect and sell the debtor’s assets. The money from the sale is then
used to pay off creditors in a fair and equal way, depending on the amount owed and
the type of claim each creditor has. This process helps prevent one creditor from
being unfairly favoured over others. The court usually only grants a sequestration
order when there is more than one creditor, because it is meant to manage situations
involving competing creditors. If there is only one creditor, that creditor must use
the ordinary court procedures to claim and enforce payment from the debtor (Smith,
Van der Linde & Calitz, 2022).
b. (2 ANSWERS PROVIDED)
Thandeka and Owen, although married, are married out of community of property,
meaning they each have their own separate estate. In terms of South African
