MRL3701 Assessment 2 Semester 2 DUE 20 September 2024

MRL3701 Assessment 2 (COMPLETE QUESTIONS & ANSWERS) Semester 2 2024 - DUE 20 September 2024 ;100 % TRUSTED workings, Expert Solved, Explanations and Solutions. For assistance call or W.h.a.t.s.a.p.p us on ...(.+.2.5.4.7.7.9.5.4.0.1.3.2)........... Assignment 02 OPENS FOR SUBMISSION: 13 September 2024 DUE DATE: 20 September 2024 This is an ordinary written or typed assignment. This assessment must be uploaded to MyModules. No emailed submissions will be accepted. Do not use a mark-reading card. Answering this question gives you practice in answering the type of problem- or discuss-type questions that you may expect in the examination. Your answer should not exceed two (2) pages (excluding the Cover Page, Bibliography or the Honesty Declaration Form). You may reference your sources as you wish, i.e. in-text, or in footnotes. A bibliography is not needed but remember to include your Honesty Declaration Form. You can find it for your convenience on MyModules under announcements. Make sure that you follow the upload instructions on how to upload your answer sheet on MyModules, as no emailed submissions will be marked. In this particular assessment we are testing your knowledge on the study of case law and legislation, so that you may be able to apply that to a factual scenario. We have noted that many students do not prepare adequately and timeously for assessments and then have no time to learn the case law when the examination draws near. With the exercise below, we are hoping to try to assist you with getting a good start to understanding case law. Remember that lecturers do not under any circumstances send to students the cases. Please refer to Tutorial Letter 101 where you can find instructions on how to download the cases from the Unisa Library E-Reserves. We wish you the best for your first assessment, The Lecturers _________________________________________________________________________ QUESTION: Simphiwe owes a total of R3 million to various creditors. His creditors include Tebogo to whom he owes R400 000. He also owes R1,3 million to BFN Bank. Last year Simphiwe invested in a get-rich-quick scheme and as a result he lost a lot of money. This left him in a dire financial situation. By 31 October 2023 his liabilities exceeded his assets by R800 000. Over the past few months Simphiwe has failed to pay some of his debts. In particular he failed to pay the R400 000 he owes to Tebogo. This debt was due and payable on 1 February 2024. Disappointed at not having been paid back the R400 000 owed to her, Tebogo undertook an investigation into Simphiwe’s financial situation. The investigation turned up unassailable proof that Simphiwe had owed R100 000 to his father-in-law, and that Simphiwe repaid R80 000 to his father-in-law on 3 February 2024. Mindful that he was technically insolvent and that one of his creditors could apply for the sequestration of his estate at any time, Simphiwe had wanted to ensure that whatever happened, his father-in-law would at least get something MRL3701 Assessment 2 Semester 2 2024 3 from his estate. Hence, he repaid the loan that he had obtained from his father-in-law even though the amount was only due and payable on 30 November 2024. Tebogo has also established that Simphiwe owns a house in Mamelodi valued at R700 000, household furniture valued at R300 000 and a motor vehicle valued at R800 000. Tebogo applies for the compulsory sequestration of Simphiwe’s estate. Answer the following questions based on the facts given above: (a) Explain the concept of a voidable preference, and also discuss what a trustee must prove in order to have such a transaction set aside by the court. (3 marks) (b) Explain the concept of an undue preference, and also discuss what a trustee must prove in order to have such a transaction set aside. (2 marks) (c) Discuss fully whether, and on what basis, the trustee of Simphiwe’s insolvent estate would be able to recover the R80 000 paid by Simphiwe to his father-in-law. (5 marks