To evaluate the statements:
A. Both a person and their estate can be sequestrated and be referred to as being insolvent.
- True: An individual can be declared insolvent, and the estate refers to assets which can also be managed or sequestrated.
B. A concursus creditorum is established only after the final sequestration order is granted in an application for compulsory sequestration.
- True: The concept refers to a collective meeting of creditors generally occurring after sequestration.
C. The law of insolvency exists primarily for the benefit of the insolvent.
- True: The purpose of insolvency law often includes protecting the rights of the insolvent.
D. The High Court and the Magistrate's Court may declare a person insolvent.
- True: Both courts have the power to declare a person insolvent.
E. The Insolvency Act predates the Constitution and therefore is a benefit for creditor's requirement is unconstitutional.
- False: The existence of the Insolvency Act pre-dating the Constitution does not render its benefits for creditors unconstitutional.
Now we can evaluate the combinations:
-
Statements A, C and E are correct.
- False: E is incorrect.
-
Statements B, C and E are correct.
- False: E is incorrect.
-
Statements A, C, and D are correct.
- True: A, C, and D are correct.
-
Statements B, C and D are correct.
- True: B, C, and D are correct.
-
All the statements are incorrect.
- False: Some statements are correct.
The most correct statement or the best combination of statements is "Statements A, C, and D are correct."
1 answer