Semester 2 2025 - DUE September 2025; 100% correct
solutions and explanations.
ALL TOPICS DONE
📑 Research Report
Topic: Impeachable Dispositions in South African Insolvency Law
Abstract
The principle of equality among creditors lies at the heart of South
African insolvency law. To ensure this principle is upheld, the
Insolvency Act 24 of 1936 provides for the setting aside of transactions
entered into by debtors that diminish the value of the estate without
providing corresponding benefit. These transactions, known as
impeachable dispositions, prevent debtors from preferring certain
creditors or dissipating assets to the detriment of others. This research
report critically examines impeachable dispositions, focusing on sections
26 to 31 of the Insolvency Act. Special emphasis is placed on the
doctrine of quid pro quo, which provides the basis for evaluating
whether the estate has received genuine value in exchange for the
disposition. Through case law analysis and academic commentary, the
report identifies key challenges in applying the law, including
uncertainty around the definition of value, outdated statutory language,
and the need for reform to address modern commercial realities such as
digital transactions. The findings suggest that while South African law
provides a sound framework for impeaching dispositions, refinement
and modernisation are necessary to achieve greater clarity and
consistency in protecting the rights of creditors.