Question 1 Read the set of facts below then answer the questions that follow: Dwala En Sonnyboy (applicants) concluded an agreement on the 10'h of September 2022 in terms of which the applicants sold to Gandaganda and Thandazile Mahlangu (referred to hereafter as the Mahlangu5150% of the members' interest {shares} in and claims against a close corporation, lzwetethu CC. The purchase price for the members' interest and claims was R940 000, payable as R420 000 on the 10th of September 2022. The remaining balance of R470 000 is to be paid no later than the 10'\" of October 2022. Gandaganda and Thandazile. jointly and severally undertook liability to the applicants for the payment of the total sum of R940 000 plus interest on the remaining sum of R420 000 referred to above. After 10 October 2022 neither Gandaganda nor Thandazile had made further payments to the applicants in connection with the remaining R420 000. Furthermore, on the 13 of October 2022, Gandaganda who is the owner of an immovable property (house) situated at 101 Singabakho Road, Imbali Township, sold it to Bafowethu Gambu for an amount R250000 which was paid in cash. Gandaganda took half of the R250 000 and settled the debt he owed his colleague Ndumiso for a loan he took in June 2022. For the remainder of the amount Gandaganda used an EFT to pay the applicants. It is clear thatthe Mahlangus failed to honour the agreement i.e to pay the full balance owed to Dwala and Sonnyboy as agreed. The applicants now seek to enforce their claim against the Mahlangus. In the case of Gandaganda, the application is for payment of the sum of R350 000, inclusive of interests and costs. In the case of Thandazile, the application is for the sequestration of her estate. 1.1 Assume that you are asked to advise the parties about the effects of their failure to heed the provisions of the contract and you come to a conclusion that their conduct shows that they are on the verge of insolvency. Explain your answer. [03] 1.2 It may be difficult for a person to establish whether a debtor is indeed insolvent because going into his or her banking accounts may infringe his right to privacy. Explain the guidelines that the Insolvency Act put in place to may assist a person to establish whether a debtor is insolvent. [05] 1.3 Suppose you advise the applicants that besides the partial payment made by Gandaganda towards the settlement of the debt, the best way to recover the remaining amount of money is through sequestration of their estates. What type of sequestration should they attempt and the requirements they need to prove to be able to apply for the particular sequestration you have mentioned? [05] 1.4 Suppose the application for sequestration is successful. Gandaganda asks you about the impact of sequestration on his personal capacity. [05] 1.5 Gandaganda does not like the insolvency status. How can he remove this cloud of insolvency hanging over his head? Mention two ways. Also advise him about the consequences of this process. [05] 1.6 Thandizile asks you about the effects of the clause in their contract that they \"jointly and severally took liability"? 1.? She further asks you how would this have affected their performance if the clause liability"? Explain your