RRLLB81
Assignment 2
Semester 2 2025
Due September 2025
,IMPEACHABLE DISPOSITIONS WITHOUT VALUE UNDER SECTION 26 OF THE
INSOLVENCY ACT 24 OF 1936
By
[STUDENT]
SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE
DEGREE BACHELOR OF LAWS IN THE DEPARTMENT OF CRIMINAL AND
PROCEDURAL LAW SCHOOL OF LAW UNIVERSITY OF SOUTH AFRICA
UNIVERSITY OF SOUTH AFRICA
September 2025
, Abstract
This study undertakes a jurisprudential analysis of impeachable dispositions in South
African insolvency law, with particular emphasis on Section 26 of the Insolvency Act 24
of 1936, which regulates “dispositions without value.” The research traces the historical
and jurisprudential development of the concept of “value,” examining the shift from a
narrow pecuniary interpretation to broader, more flexible approaches that acknowledged
intangible benefits. Central to this evolution is the Supreme Court of Appeal’s decision in
Strydom N.O. v Snowball Wealth (Pty) Ltd, which adopted a restrictive stance by
holding that Section 26 applies only to dispositions conferring “no value at all.” This
interpretation has narrowed the scope of impeachable dispositions, recalibrating the
balance between creditor protection and contractual autonomy by prioritising
transactional certainty.
Through comparative analysis with jurisdictions such as the United Kingdom, Australia,
and the United States, the study demonstrates that foreign legal systems have adopted
statutory provisions addressing transactions at an undervalue or uncommercial
dealings. Drawing on these models, the study argues that South African law requires
legislative reform to incorporate a statutory “inadequate value” test. Such reform would
align judicial interpretation with the protective objectives of insolvency law and restore
the balance between preserving the concursus creditorum and safeguarding
commercial certainty. The study concludes that without reform, South African insolvency
law risks undermining its equitable foundations by leaving creditors vulnerable to
commercially unsound, yet legally unassailable, transactions.
, Contents
Abstract ........................................................................................................................... 2
Chapter One: Introduction ............................................................................................... 5
1.1 Background of the Study ....................................................................................... 5
1.2 Statement of the Problem ...................................................................................... 6
1.3 Objectives of the Study .......................................................................................... 6
1.4 Project Hypotheses ................................................................................................ 7
1.5 Significance of the Study ....................................................................................... 7
1.6 Scope of the Study ................................................................................................ 8
1.7 Definition of Terms ................................................................................................. 9
Chapter Two: Literature Review and Theoretical Framework ........................................ 10
2.1 Introduction .......................................................................................................... 10
2.2 Review of South African Literature ....................................................................... 10
2.3 Comparative Literature ........................................................................................ 12
2.4 Theoretical Framework ........................................................................................ 13
2.5 Conclusion ........................................................................................................... 14
Chapter Three: Research Methodology ........................................................................ 15
3.1 Introduction .......................................................................................................... 15
3.2 Research Philosophy ........................................................................................... 15
3.3 The Doctrinal Legal Method ................................................................................. 16
3.4 Jurisprudential Method ........................................................................................ 18
3.5 Comparative Methodology ................................................................................... 19
3.6 Analytical Framework ........................................................................................... 20
3.7 Scope, Limitations, and Reflexivity ...................................................................... 20
Assignment 2
Semester 2 2025
Due September 2025
,IMPEACHABLE DISPOSITIONS WITHOUT VALUE UNDER SECTION 26 OF THE
INSOLVENCY ACT 24 OF 1936
By
[STUDENT]
SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE
DEGREE BACHELOR OF LAWS IN THE DEPARTMENT OF CRIMINAL AND
PROCEDURAL LAW SCHOOL OF LAW UNIVERSITY OF SOUTH AFRICA
UNIVERSITY OF SOUTH AFRICA
September 2025
, Abstract
This study undertakes a jurisprudential analysis of impeachable dispositions in South
African insolvency law, with particular emphasis on Section 26 of the Insolvency Act 24
of 1936, which regulates “dispositions without value.” The research traces the historical
and jurisprudential development of the concept of “value,” examining the shift from a
narrow pecuniary interpretation to broader, more flexible approaches that acknowledged
intangible benefits. Central to this evolution is the Supreme Court of Appeal’s decision in
Strydom N.O. v Snowball Wealth (Pty) Ltd, which adopted a restrictive stance by
holding that Section 26 applies only to dispositions conferring “no value at all.” This
interpretation has narrowed the scope of impeachable dispositions, recalibrating the
balance between creditor protection and contractual autonomy by prioritising
transactional certainty.
Through comparative analysis with jurisdictions such as the United Kingdom, Australia,
and the United States, the study demonstrates that foreign legal systems have adopted
statutory provisions addressing transactions at an undervalue or uncommercial
dealings. Drawing on these models, the study argues that South African law requires
legislative reform to incorporate a statutory “inadequate value” test. Such reform would
align judicial interpretation with the protective objectives of insolvency law and restore
the balance between preserving the concursus creditorum and safeguarding
commercial certainty. The study concludes that without reform, South African insolvency
law risks undermining its equitable foundations by leaving creditors vulnerable to
commercially unsound, yet legally unassailable, transactions.
, Contents
Abstract ........................................................................................................................... 2
Chapter One: Introduction ............................................................................................... 5
1.1 Background of the Study ....................................................................................... 5
1.2 Statement of the Problem ...................................................................................... 6
1.3 Objectives of the Study .......................................................................................... 6
1.4 Project Hypotheses ................................................................................................ 7
1.5 Significance of the Study ....................................................................................... 7
1.6 Scope of the Study ................................................................................................ 8
1.7 Definition of Terms ................................................................................................. 9
Chapter Two: Literature Review and Theoretical Framework ........................................ 10
2.1 Introduction .......................................................................................................... 10
2.2 Review of South African Literature ....................................................................... 10
2.3 Comparative Literature ........................................................................................ 12
2.4 Theoretical Framework ........................................................................................ 13
2.5 Conclusion ........................................................................................................... 14
Chapter Three: Research Methodology ........................................................................ 15
3.1 Introduction .......................................................................................................... 15
3.2 Research Philosophy ........................................................................................... 15
3.3 The Doctrinal Legal Method ................................................................................. 16
3.4 Jurisprudential Method ........................................................................................ 18
3.5 Comparative Methodology ................................................................................... 19
3.6 Analytical Framework ........................................................................................... 20
3.7 Scope, Limitations, and Reflexivity ...................................................................... 20
