MRL 3701 Test Exam Questions And Answers
Verified 100% Correct
true - answer it has been held by a majority of the constitutional court that section 21 of the
insolvency act does not impair the fundamental dignity of solvent spouses
true - answer as far as ranking is concerned, a secured creditor (e.g a mortage bondholder) is in
the strongest position, because his or her claim is paid first out of the proceeds of a certain asset
which serves as security for that claim
true - answer because of the principle of "huur gaat voor koop", the trustee cannot, as a rule,
repudiate a lease of immovable property concluded by the insolvent as lessor and must realize
the property subject to the lease
true - answer an insolvent estate, for purposes of distribution, consists of the proceeds of both
the encumbered and unencumbered assets
true - answer one effect of the principle of the separate legal personality of the company is that
the assets and liabilities of the company are the assets and liabilities of the company and not of
the members of the company
false - answer if the insolvent has been convicted of a fraudulent act in relation to his
insolvency, he may apply for rehabilitation after two years have elapsed from the date of his
conviction
false - answer an application to surrender a partnership estate must, as a rule, be brought by
only one partner
false - answer a concurrent creditor enjoys advantage over other creditors of the insolvent
,true / false - answer unlike in the case of a company, no provision is made for the appointment
of a provisional liquidator for a close corporation
Person's - answer the terms sequestration and sequestration order should stritly be used only
with reference to a ____ estate
personal - answer in ex parte henning, the statement of affairs that lay for inspection did not
contain the ____ information
8(g) - 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
written - answer a debtor may not, without the ____ consent of the trustee enter into a contract
which adversely affects his estate
released - answer the property of the spouse of the insolvent, where the marriage is out of
community of property, also vests in the trustee of the insolvent estate, until it is ____ by the
trustee
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
true - answer the application for compulsory business rescue suspends any liquidation
proceedings involving the company
true - answer the court may accept the surrender of a debtor's estate only if it is satisfied that
,amongst others, sequestration will be to the advantage of creditors
false - answer the sequestration of an employee's estate does not suspend the employment
contract between him and his employer
, true - answer an application for compulsory sequestration brought by a creditor who is not at
arm's length is generally referred to as a 'friendly' sequestration
true - answer the purpose of the first meeting of creditors is to enable creditors of the estate to
prove their claims against the estate and elect a trustee
false - answer a valid pledge is constituted where there is adelivery of immovable property to a
creditor on the understanding that it will be retained by him/her until the claim has been satisfied
true - answer in prinsloo v van zyl 1967, the offer of composition was accepted only by a
majority in value, and so there was no valid acceptance, and thus no valid composition false -
answer the sequestration of a partner's estate does not terminate the partnership
true - answer a person who has been convicted of fraud and been sentenced for it to a r100 fine
is disqualified from being appointed as a liquidator
true - answer a liquidated claim is a claim for money, the amount of which is fixed by
agreement, judgement or otherwise
true - answer under section 34(3) of the insolvency act, ilse's transfer of her jewellery business
in july is void against jack, who sued ilse in the magistrate's court in june for the purchase price
of diamonds that he delivered to her for that business
false - answer as a general rule, a member of a close corporation must be a juristic person (a
human being)
false - answer a concurrent creditor enjoys advantage over the other creditors of the insolvent
false - answer the free residue must be applied, in the first place, to defray funeral expenses
insolvent person prohibited from holding certain offices? - answer - prejudice to public interest
- greater amount of trust & responsibility is required
Verified 100% Correct
true - answer it has been held by a majority of the constitutional court that section 21 of the
insolvency act does not impair the fundamental dignity of solvent spouses
true - answer as far as ranking is concerned, a secured creditor (e.g a mortage bondholder) is in
the strongest position, because his or her claim is paid first out of the proceeds of a certain asset
which serves as security for that claim
true - answer because of the principle of "huur gaat voor koop", the trustee cannot, as a rule,
repudiate a lease of immovable property concluded by the insolvent as lessor and must realize
the property subject to the lease
true - answer an insolvent estate, for purposes of distribution, consists of the proceeds of both
the encumbered and unencumbered assets
true - answer one effect of the principle of the separate legal personality of the company is that
the assets and liabilities of the company are the assets and liabilities of the company and not of
the members of the company
false - answer if the insolvent has been convicted of a fraudulent act in relation to his
insolvency, he may apply for rehabilitation after two years have elapsed from the date of his
conviction
false - answer an application to surrender a partnership estate must, as a rule, be brought by
only one partner
false - answer a concurrent creditor enjoys advantage over other creditors of the insolvent
,true / false - answer unlike in the case of a company, no provision is made for the appointment
of a provisional liquidator for a close corporation
Person's - answer the terms sequestration and sequestration order should stritly be used only
with reference to a ____ estate
personal - answer in ex parte henning, the statement of affairs that lay for inspection did not
contain the ____ information
8(g) - 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
written - answer a debtor may not, without the ____ consent of the trustee enter into a contract
which adversely affects his estate
released - answer the property of the spouse of the insolvent, where the marriage is out of
community of property, also vests in the trustee of the insolvent estate, until it is ____ by the
trustee
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
true - answer the application for compulsory business rescue suspends any liquidation
proceedings involving the company
true - answer the court may accept the surrender of a debtor's estate only if it is satisfied that
,amongst others, sequestration will be to the advantage of creditors
false - answer the sequestration of an employee's estate does not suspend the employment
contract between him and his employer
, true - answer an application for compulsory sequestration brought by a creditor who is not at
arm's length is generally referred to as a 'friendly' sequestration
true - answer the purpose of the first meeting of creditors is to enable creditors of the estate to
prove their claims against the estate and elect a trustee
false - answer a valid pledge is constituted where there is adelivery of immovable property to a
creditor on the understanding that it will be retained by him/her until the claim has been satisfied
true - answer in prinsloo v van zyl 1967, the offer of composition was accepted only by a
majority in value, and so there was no valid acceptance, and thus no valid composition false -
answer the sequestration of a partner's estate does not terminate the partnership
true - answer a person who has been convicted of fraud and been sentenced for it to a r100 fine
is disqualified from being appointed as a liquidator
true - answer a liquidated claim is a claim for money, the amount of which is fixed by
agreement, judgement or otherwise
true - answer under section 34(3) of the insolvency act, ilse's transfer of her jewellery business
in july is void against jack, who sued ilse in the magistrate's court in june for the purchase price
of diamonds that he delivered to her for that business
false - answer as a general rule, a member of a close corporation must be a juristic person (a
human being)
false - answer a concurrent creditor enjoys advantage over the other creditors of the insolvent
false - answer the free residue must be applied, in the first place, to defray funeral expenses
insolvent person prohibited from holding certain offices? - answer - prejudice to public interest
- greater amount of trust & responsibility is required
