F
, BE2604 Assignment 1 Semester 1 2026 - Due 26 March 2026; 10
FBE2604 – Assignment 01 (2026)
Question 1
Issue
The issue is whether a valid partnership came into existence between
Thabo and Lerato, despite the absence of a written agreement, and
whether Thabo can compel Lerato to share in the losses of the
business.
Legal Principles: Essentialia of a Partnership
South African law recognises a partnership as a contract that arises
once the essentialia are present. These are:
1. Each party must make a contribution (money, labour, skill, or
property).
2. The business must be carried on for the joint benefit of the
parties.
3. The object of the agreement must be to make a profit, which is
shared between the parties.
These requirements were confirmed in Joubert v Tarry & Co and
applied in later partnership cases.
Importantly, intention of the parties, assessed objectively from their
conduct and agreement, plays a crucial role in determining whether a
partnership exists.
Application
Contribution
Thabo contributed R100 000 in cash, while Lerato contributed her
skills, industry knowledge, contacts, and management services.
South African law recognises non-monetary contributions as valid.
This requirement is satisfied.
, BE2604 Assignment 1 Semester 1 2026 - Due 26 March 2026; 10
FBE2604 – Assignment 01 (2026)
Question 1
Issue
The issue is whether a valid partnership came into existence between
Thabo and Lerato, despite the absence of a written agreement, and
whether Thabo can compel Lerato to share in the losses of the
business.
Legal Principles: Essentialia of a Partnership
South African law recognises a partnership as a contract that arises
once the essentialia are present. These are:
1. Each party must make a contribution (money, labour, skill, or
property).
2. The business must be carried on for the joint benefit of the
parties.
3. The object of the agreement must be to make a profit, which is
shared between the parties.
These requirements were confirmed in Joubert v Tarry & Co and
applied in later partnership cases.
Importantly, intention of the parties, assessed objectively from their
conduct and agreement, plays a crucial role in determining whether a
partnership exists.
Application
Contribution
Thabo contributed R100 000 in cash, while Lerato contributed her
skills, industry knowledge, contacts, and management services.
South African law recognises non-monetary contributions as valid.
This requirement is satisfied.
