MRL3701 ASSIGNMENT 2 SEMESTER 1 – 2023 (791956)

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MRL3701 ASSIGNMENT 2 SEMESTER 1 – 2023 (791956)

During your research, you find that dispositions which may be set aside, include those
not made for value, voidable preferences, undue preferences, collusive dealings, and
those made in fraud of creditors.

1. Which of the dispositions above may be set aside in terms of the common law, and
what is the relevant action that may be used to set the disposition aside? (2)

2. What must the trustee prove to set aside a disposition made for no value? (2)

3. Regarding the factual scenario above, advise your client what a section 29
disposition is, state whether there is an exception to section 29 that may protect
him, and what that exception is. Lastly state which test is applied to determine
whether the exception applies. (3)

4. State whether the following statement is true or false and provide a motivation for
your answer:
Referring to Collusive Dealings, ‘collusion’ in terms of section 31(1) of the
Insolvency Act refers to any agreement with the results that one creditor is
preferred over another.

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