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Daniel Thorne owns Club Truth, a successful nightclub in Sandton

Law

Daniel Thorne owns Club Truth, a successful nightclub in Sandton.Daniel enters into a written agreement with Tmax who owns Mad Max Liquor Store, to supply Club Truth with alcohol every first week of the month worth R 250 000. 00 (two hundred and fifty thousand rand). While alcohol has been supplied as per the parties' agreement, nonetheless, Daniel has failed to make payments for four (4) consecutive months. After heavy rains, part of the Club Truth building was damaged, and Daniel borrowed R 100 000.00 (one hundred thousand rand) from his friend, Tom. The parties agreed that Daniel with repay the money in ten (10) periodic payments of R 10 000.00 (ten thousand rand). After three (3) months, Daniel has not made even a single payment. Tmax has ceased to supply Club Truth with alcohol and after several unsuccessful demands for payment, he threatened to apply for the sequestration of Daniel's estate. This led Daniel to sell his 2018 Bentley worth R 3 500 000.00 (three million five hundred thousand rand) to his son for R 30 000.00 (thirty thousand rand). Two months after this transaction, Tom, who is angry that he has not been paid his money, applies for the sequestration of Daniel's estate at the Gauteng Local Division of the High Court. A final sequestration order was granted on 13 September 2019. After the first meeting of creditors, Mr Thipe is appointed as the trustee of Daniel's estate. Mr Thipe investigates the affairs of Daniel's estate and transactions Daniel entered before his estate was sequestrated. Mr Thipe discovers that two months before his sequestration, Daniel sold his expensive vehicle to his son. By first identifying the type of transaction between Daniel and his son, and with reference to 5 relevant statutory provision and case law ,what are the grounds that could enable Mr Thipe to set aside the transaction between Daniel and his son. Secondly,what would Mr Thipe's prospects of success.

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