To evaluate the correctness of each statement:
A. Compulsory sequestration will only be granted if the expected result will be an appreciable dividend for creditors. - This statement is generally correct; the court will consider the possibility of a dividend for creditors when considering a sequestration application.
B. Sequestration relieves the debtor of all unpaid pre-sequestration debts. - This statement is somewhat misleading. While sequestration does provide a framework for dealing with debts, it does not automatically relieve the debtor of all unpaid debts; instead, it may provide a mechanism for managing those debts.
C. Both a person and their estate can be sequestrated and be referred to as being insolvent. - This statement is accurate; both individuals and the estates of deceased persons can be subjected to sequestration.
D. Sequestration limits a debtor's capacity regarding certain contracts. - This is true; once a debtor is sequestrated, their ability to enter into new contracts is restricted.
E. In the Naidoo case, the court confirmed that a sequestration order is not an ordinary judgment entitling a creditor to execute against a debtor. - This statement is also correct; sequestration is a legal process that is distinct from ordinary judgment enforcement.
Based on the analysis:
- Statement A is correct.
- Statement B is somewhat misleading and cannot be considered fully correct.
- Statements C, D, and E are correct.
Given this understanding, the best combination of statements that reflects the correct interpretations is:
Statements A, C, D and E are correct.
However, since this option does not appear in the provided choices, it indicates that none of the options fully encapsulate the correctness of the statements given the misleading nature of statement B. Therefore, if I must choose from the provided options, the closest choice reflecting the accuracy of the most statements while acknowledging some misleading aspects of B would be:
Statements A, B, D and E are correct.
This option accepts A, D, and E as correct, while B is taken somewhat at face value, despite its misleading nuances.
1 answer