FBE2604 Assignment 1 (DETAILED ANSWERS) Semester 1 2026 - DISTINCTION GUARANTEED

FBE2604
Assignment 1 Semester 1 2026
Unique number:
Due Date: 24 March 2026

Detailed solutions, explanations, workings
and references.


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, QUESTION 1 (2 DIFFERENT ANSWERS PROVIDED)

VALIDITY OF PARTNERSHIP BETWEEN THABO AND LERATO

To determine whether a valid partnership exists between Thabo and Lerato, we must
assess the situation based on the essentialia of a partnership agreement as set out
in Joubert v Tarry and Co 1915 TPD 277 and other relevant case law.

Contribution by Partners

The first requirement is that each party must make a contribution with commercial
value. Thabo contributed R100 000 in cash, while Lerato contributed her skills,
knowledge, and contacts. However, Thabo demanded his contribution back even if
the business failed. This type of contribution is not exposed to business risk and fails
to meet the requirement of a valid partnership contribution.1 In contrast, Lerato’s
contribution of expertise and effort is valid, but a partnership requires both
contributions to be risk-bearing.2




1
Joubert v Tarry and Co 1915 TPD 277.
2
FBE2604 Study Guide (University of South Africa, 2015) 111.


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