, FBE2604 Assignment 1 (COMPLETE ANSWERS) Semester
1 2026 - DUE 24 March 2026; 100% Correct solutions and
explanations.
QUESTION 1
1. Introduction
The dispute between Thabo and Lerato centres on whether their
business arrangement constitutes a valid partnership in South
African law. Thabo alleges that a partnership exists and demands
that Lerato share in the losses of the business, while Lerato denies
the existence of any partnership. To resolve this issue, it is necessary
to examine whether the agreement between the parties satisfies the
essential elements (essentialia) of a partnership, as established by
South African common law and relevant case law.
2. Legal Requirements for a Valid Partnership
South African courts have consistently held that a partnership exists
only if certain essential requirements are met. In Joubert v Tarry
& Co 1915 TPD 277, the court identified the essentialia of a
partnership as follows:
1. Each party must make a contribution to the partnership;
2. The partnership must be carried on for the joint benefit of the
parties;
3. The object of the partnership must be to make a profit;
4. There must be an agreement to share profits and losses.
All these elements must be present for a valid partnership to come
into existence.
1 2026 - DUE 24 March 2026; 100% Correct solutions and
explanations.
QUESTION 1
1. Introduction
The dispute between Thabo and Lerato centres on whether their
business arrangement constitutes a valid partnership in South
African law. Thabo alleges that a partnership exists and demands
that Lerato share in the losses of the business, while Lerato denies
the existence of any partnership. To resolve this issue, it is necessary
to examine whether the agreement between the parties satisfies the
essential elements (essentialia) of a partnership, as established by
South African common law and relevant case law.
2. Legal Requirements for a Valid Partnership
South African courts have consistently held that a partnership exists
only if certain essential requirements are met. In Joubert v Tarry
& Co 1915 TPD 277, the court identified the essentialia of a
partnership as follows:
1. Each party must make a contribution to the partnership;
2. The partnership must be carried on for the joint benefit of the
parties;
3. The object of the partnership must be to make a profit;
4. There must be an agreement to share profits and losses.
All these elements must be present for a valid partnership to come
into existence.
