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RRLLB81 Assignment 2 (DETAILED ANSWERS) Semester 2 2025 - DISTINCTION GUARANTEED - Impeachable dispositions in Law of Insolvency

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RRLLB81 Assignment 2 (DETAILED ANSWERS) Semester 2 2025 - DISTINCTION GUARANTEED - DISTINCTION GUARANTEED - DISTINCTION GUARANTEED Answers, guidelines, workings and references ,... Impeachable dispositions in Law of Insolvency Background An insolvent person can try to gather funds to relief some of the financial burden. This could include the selling of some of his assets to settle other debts. The amount that an asset is sold can determine whether the disposition of the asset can be set aside, as a disposition not made for value. For instance, if a friend or a relative of the insolvent person had acquired the assets from the insolvent person at a bargain price, and a contract is established between the two, should this agreement be challenged? The value the asset is disposed of can be a matter of dispute. Nevertheless, the contract can be considered to be valid between the insolvent and the relative. In insolvency law, the concept of “quid pro quo” matter when determining whether a disposition can be set aside. Is it therefore legally viable to set aside a disposition made on sale that can be considered to be a bargain. Conduct a research and provide your own understand of the legal rules involved. 54 Cases Bloom’s Trustee v Fourie 1921 TPD 599 Hendriks N.O. v Swanepoel 1962 (4) SA 338 (A) Strydom N.O. v Snowball Wealth (Pty) 2022 (5) SA 438 (SCA) Books Sharrock J, Van der Linde K and Smith A, Hockly’s Insolvency Law (9th edn, Juta 2012) Bertelsmann E and others, Mars: Law of Insolvency in South Africa (10th edn, Juta 2019) Legislation Insolvency Act 24 of 1936 Journal Articles Mabe Z, ‘Setting aside Transactions from Pyramid Schemes as Impeachable Dispositions under South African Insolvency Legislation’ (2016)19 PER / PELJ 1 Marumoagae MC, ‘What amounts to “dispositions without value” in the context of section 26 of the Insolvency Act 24 of 1936?’ (2023) De Jure LJ 174

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RRLLB81
Assignment 2 Semester 2 2025
Unique #:

Due Date: September 2025

Detailed solutions, explanations, workings
and references.

+27 81 278 3372

, Impeachable dispositions in Law of Insolvency



By



[RRLLB81 STUDENT]

(012345678)

Submitted in partial fulfilment of the requirements for the degree



BACHELOR OF LAWS

in the



DEPARTMENT OF CRIMINAL AND PROCEDURAL LAW

SCHOOL OF LAW

UNIVERSITY OF SOUTH AFRICA




SUPERVISOR: PROF MM MONYAKANE



RRLLB81 ASSESSMENT 2 / FINAL PORTFOLIO

(DUE DATE: September 2025)




ABSTRACT




Varsity Cube 2025 +27 81 278 3372

, This research explores impeachable dispositions in South African insolvency law,
with a focus on whether the sale of an insolvent‘s asset at a bargain price can be set
aside under the Insolvency Act 24 of 1936. The study examines the legal principles
surrounding dispositions without value and the requirement of quid pro quo,
considering statutory provisions, judicial interpretation, and scholarly commentary.
Central to the analysis are landmark cases such as Bloom’s Trustee v Fourie 1921
TPD 599, Hendriks N.O. v Swanepoel 1962 (4) SA 338 (A), and the recent decision
in Strydom N.O. v Snowball Wealth (Pty) Ltd 2022 (5) SA 438 (SCA). By engaging
with academic works, including Hockly‘s Insolvency Law and Mars: Law of
Insolvency in South Africa, as well as recent journal discussions, the research
evaluates when dispositions should be impeached. The findings highlight the
delicate balance between contractual freedom and the protection of creditors in
insolvency proceedings.



KEYWORDS

Insolvency law

Impeachable dispositions

Dispositions without value

Quid pro quo

Creditors‘ protection




LIST OF ABBREVIATIONS AND ACRONYMS


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Laura Cahillane, Jennifer Schweppe Legal Research Methods
Publisher: 2016 ISBN: 9781905536764 Edition: Unknown

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