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MRL3701 Assignment 1 Due 12 March 2024
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Assessment 01:
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.
FALSE
In the Standard Bank of SA Ltd v Sewpersadh and Another case, the court determined
that if one spouse in a marriage in community of property commits an act of insolvency,
it is regarded as an act of insolvency for both spouses. This ruling establishes a valid
basis for the sequestration of the joint estate. Furthermore, after the dissolution of the
marriage through divorce, it also allows for the sequestration of the other spouse’s
separate estate. The significance of this legal precedent, especially in the realm of
insolvency within marriages in community of property, becomes apparent when
examining the details of the ruling, including its implications and the legal rationale
involved.
b. During the period of insolvency, an insolvent is not allowed to acquire a new
estate.
FALSE
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