MRL3701EXAM QUESTIONS AND ANSWERS

MRL3701EXAM QUESTIONS AND ANSWERS. .-ANSWER-According to section ____ of the Insolvency Act, it is an act of insolvency if a debtor gives notice in writing to a creditor that he is unable to pay one or more of his debts .abandonment - ANSWER-According to section 2 of the Insolvency Act 24 of 1936, the term ‘disposition’ includes , amongst others, a transfer or ______ of rights to property .absolute - ANSWER-Note that as a result of a relative ground for disqualification such a person cannot be a trustee of a specific insolvent estate. This prohibition differs from the ____ grounds for disqualification where such a person may not be a trustee of any insolvent estate whatsoever .advantage - ANSWER-The court may accept the surrender of a debtor’s estate only if it is satisfied that the debtor’s estate is in fact insolvent, that the debtor own realizable property of sufficient value to defray all the costs of the sequestration which will, in terms of the act be payable out of the free residue of his estate. It must also be shown that sequestration will be to the _________________ of creditors. .advantage of creditors - ANSWER-In an application for voluntary surrender, the debtor’s founding affidavit must allege that it will be to _____ if the debtor’s estate is sequestrated .asset - ANSWER-If the insolvent has carried out his side of the contract and only the other party’s performance is outstanding, the right to that performance is an ___ in the insolvent estate and vests in the trustee .assets - ANSWER-In Ex parte Harmse, the applicant’s statement indicated an excess of _______________over liabilities, but the only evidence that he adduced to prove otherwise were certain letters written by estate agents or valuers .bona fide - ANSWER-Another category of property which the trustee must release is that acquired by the solvent spouse under a marriage settlement (s 21(2)(b)). The solvent spouse need not prove that the settlement was _____________________. .collusion - ANSWER-Section 21 was introduced to prevent, or at least hamper, ______________ between spouses to the detriment of creditors of the insolvent estate. .common law - ANSWER-When a partnership is dissolved because the estate of one of the partners has been sequestrated, the partnership assets are divided among the partners in terms of the partnership contract or the ______ .competence - ANSWER-The Supreme Court of Appeal has now laid down authoritatively that the beneficiary in this type of case merely has a _________________________________or power to accept the inheritance or benefit in question and that, until he does so, it does not form part of his estate (Wessels NO v De Jager en ‘n ander NNO 2000 (4) SA 924 (SCA) 928). .composition - ANSWER-As a rule, an insolvent must wait for a certain period of time before he may apply for his rehabilitation. However, where an offer of _____________________________has been accepted, the insolvent may be entitled to apply for his rehabilitation immediately. .confirmed - ANSWER-The sequestrating creditor has to approach the court twice; once to obtain a provisional order and the second time to have the provisional order ____________________ and made final. .court - ANSWER-The rehabilitation of an insolvent is a matter which lies solely within the discretion of the _____ .creditors - ANSWER-Insolvency law provides a procedure for dealing fairly with the claims that the unpaid _____________________ of the insolvent person have against the insolvent estate. Insolvency law also protects the debtor from being harassed by his or her creditors. .creditors; court order - ANSWER-formal defect in an application for sequestration will be fatal if the defect causes a substantial injustice to ................................................... and that prejudice cannot be put right by a ............................................... .criminal - ANSWER-It is a _________________________offence for a person to accept a benefit as consideration for agreeing to, or for not opposing, a composition (s 141). .declaratory order - ANSWER-The court considered the aspect of ________________ in the case of Vorster v Steyn 1981(2) SA 831 (O). .defamation - ANSWER-Section 23(8) allows the insolvent to recover for his own benefit compensation for any loss or damage which he may have suffered, whether before or after sequestration of his estate, by reason of ____ or personal injury .directors - ANSWER-the human beings (the natural persons) who administer the business of the company are its ______ .dispose - ANSWER-The debtor may not make a contract which purports to ____ of any property of his insolvent estate .employer - ANSWER-When an employment contract between an ____________ and employee is suspended in terms of section 38(1) of the insolvency Act, amongst other things, no employment benefit accrues to the employee in terms of the contract. .employment - ANSWER-When an employment contract between an employer and employee is suspended in terms of section 38(1) of the Insolvency Act, amongst other things, no ______ benefit accrues to the employee in terms of the contract .Ensor NO v Rensco Motors 1981 - ANSWER-FACTS - debtor had business whereby he sold Mazda parts - trustee wanted to impeach them ito S34 ISSUE - was it an S34 disposition? HELD - no, was in the ordinary course of business - onus on trustee to prove that it was not in the ordinary course of business - the trustee could not discharge this onus .equally - ANSWER-Although concurrent creditors rank equally, they do not necessarily receive the same amounts when the free residue of the estate is distributed. The dividend payable to concurrent creditors amounts to a certain ______ of cents in the rand .equally; proportion - ANSWER-Although concurrent creditors rank __________, they do not necessarily receive the same amounts when the free residue of the estate is distributed. The dividend payable to concurrent creditors amounts to a certain _________ of cents in the rand. .equitable - ANSWER-the main objective of a sequestration order is to secure the just and ____ distribution of a debtor’s assets where they are insufficient to meet the claims of all his creditors .fact - ANSWER-The question whether the trustee has elected to abide by the contract is one of_____________, not law.