MRL3701
Assignment
Semester 1 2024
ADMIN
, Question 1: (5 marks) Indicate whether the following statements are TRUE (T)
or FALSE (F) and provide a reason or explanation for your answer. a. An act
of insolvency committed by a spouse married in community of property
operates as an act of insolvency by the guilty spouse. b. During the period of
insolvency, an insolvent is not allowed to acquire a new estate. c. The
insolvent may recover for his own benefit any pension to which he may be
entitled as this forms part of property that does not fall into the insolvent
estate. d. An insolvent who brings an action in the Magistrate’s Court is
obliged by Rule 62(1)(b) of the Magistrate’s Court Rules to give security for
the costs of the action if the defendant requests it. e. A debtor who has no
assets and only liabilities can surrender his estate. (5)
a. True. In community of property, spouses share ownership of their
assets and liabilities equally. Therefore, an act of insolvency
committed by one spouse affects the joint estate, making the guilty
spouse insolvent.
b. False. During the period of insolvency, an insolvent may still
acquire a new estate. However, any assets acquired during this
period may be included in the insolvent estate and used to satisfy
creditors' claims.
c. False. In many jurisdictions, a pension is often protected from
being included in the insolvent estate. This protection aims to
provide some financial security for the insolvent individual.
d. True. Rule 62(1)(b) of the Magistrate’s Court Rules typically
requires an insolvent who brings an action in the Magistrate’s Court
to provide security for the costs of the action if the defendant
requests it. This is a measure to ensure that the defendant is
protected in case the plaintiff cannot cover the costs.
Assignment
Semester 1 2024
ADMIN
, Question 1: (5 marks) Indicate whether the following statements are TRUE (T)
or FALSE (F) and provide a reason or explanation for your answer. a. An act
of insolvency committed by a spouse married in community of property
operates as an act of insolvency by the guilty spouse. b. During the period of
insolvency, an insolvent is not allowed to acquire a new estate. c. The
insolvent may recover for his own benefit any pension to which he may be
entitled as this forms part of property that does not fall into the insolvent
estate. d. An insolvent who brings an action in the Magistrate’s Court is
obliged by Rule 62(1)(b) of the Magistrate’s Court Rules to give security for
the costs of the action if the defendant requests it. e. A debtor who has no
assets and only liabilities can surrender his estate. (5)
a. True. In community of property, spouses share ownership of their
assets and liabilities equally. Therefore, an act of insolvency
committed by one spouse affects the joint estate, making the guilty
spouse insolvent.
b. False. During the period of insolvency, an insolvent may still
acquire a new estate. However, any assets acquired during this
period may be included in the insolvent estate and used to satisfy
creditors' claims.
c. False. In many jurisdictions, a pension is often protected from
being included in the insolvent estate. This protection aims to
provide some financial security for the insolvent individual.
d. True. Rule 62(1)(b) of the Magistrate’s Court Rules typically
requires an insolvent who brings an action in the Magistrate’s Court
to provide security for the costs of the action if the defendant
requests it. This is a measure to ensure that the defendant is
protected in case the plaintiff cannot cover the costs.
