(a) Explain the concept of a voidable preference, and also discuss what a trustee must prove in order to have such a transaction set aside by the court. (3 marks)
A voidable preference in insolvency law refers to a situation where a debtor, who is facing financial difficulties, transfers assets or...
Department of Mercantile Law Assessment Department of Mercantile Law Assessment
Insolvency Law
MRL3701 Department of Mercantile Law
Assessment
Semester 2 , Assignment 02 OPENS FOR SUBMISSION: 13 September 2024 DUE
DATE: 20 September 2024
Question a to c
9/20/2024
, This is an ordinary written or typed assignment. This assessment must be
uploaded to MyModules. No emailed submissions will be accepted. Do not use a
mark-reading card. Answering this question gives you practice in answering the
type of problem- or discuss-type questions that you may expect in the
examination. Your answer should not exceed two (2) pages (excluding the Cover
Page, Bibliography or the Honesty Declaration Form).
You may reference your sources as you wish, i.e. in-text, or in footnotes.
A bibliography is not needed but remember to include your Honesty Declaration
Form. You can find it for your convenience on MyModules under announcements.
Make sure that you follow the upload instructions on how to upload your answer
sheet on MyModules, as no emailed submissions will be marked. In this particular
assessment we are testing your knowledge on the study of case law and
legislation, so that you may be able to apply that to a factual scenario. We have
noted that many students do not prepare adequately and timeously for
assessments and then have no time to learn the case law when the examination
draws near. With the exercise below, we are hoping to try to assist you with
getting a good start to understanding case law. Remember that lecturers do not
under any circumstances send to students the cases. Please refer to Tutorial
Letter 101 where you can find instructions on how to download the cases from
the Unisa Library E-Reserves. We wish you the best for your first assessment, The
Lecturers
___________________________________________________________________
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QUESTION:
Simphiwe owes a total of R3 million to various creditors. His creditors include
Tebogo to whom he owes R400 000. He also owes R1,3 million to BFN Bank.
Last year Simphiwe invested in a get-rich-quick scheme and as a result he lost a
lot of money. This left him in a dire financial situation. By 31 October 2023 his
liabilities exceeded his assets by R800 000. Over the past few months Simphiwe
has failed to pay some of his debts. In particular he failed to pay the R400 000
he owes to Tebogo. This debt was due and payable on 1 February 2024.
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