Assignment 2 Semester 1 2026
Unique number
Due Date: 24 March 2026
Detailed solutions, explanations, workings
and references.
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, QUESTION 1
The main purpose of Section 21 is to prevent dishonest collusion between spouses
that could harm the rights of creditors when one spouse is declared insolvent. 1 It
allows the Master and, later, the trustee to take temporary control of the solvent
spouse’s separate property, treating it as if it belonged to the insolvent estate.2 This
is to ensure that assets are not unlawfully hidden or transferred under false claims of
separate ownership. However, the solvent spouse may reclaim their property if they
prove legal ownership in terms of Section 21(2). This mechanism ensures fairness
and transparency in the distribution of the insolvent’s estate.
1
Insolvency Act 24 of 1936, s 21
2
Harksen v Lane NO and Others 1998 (1) SA 300 (CC);
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