FBE2604 ASSIGNMENT 2 2026
DUE AUGUST 2026
1.1 Whether a valid partnership existed
A partnership is defined as a legal relationship created by contract between two or more
persons, in which each partner agrees to make some contribution to the partnership
business, which is carried on for the joint benefit of the parties with the object of making
a profit (Pezzutto v Dreyer and others 1992 (3) SA 397 (A);The essential elements
(essentialia) of a partnership, as outlined in the study material, are contribution, joint
benefit, profit motive, and a legitimate contract (FBE2604 Study Guide, Study Unit 14, p.
109).
Contribution by each partner
Each partner must contribute something of economic value, such as money, property,
skill, or knowledge (FBE2604 Study Guide, Study Unit 14, p. 109). Thabo, Lerato and
Aisha each contributed R30 000 in cash, which fully satisfies this requirement.
Business carried on for the joint benefit of the parties: Each partner must be entitled to
share in the net profits. Their agreement to share profits equally satisfies this essential
element (FBE2604 Study Guide, Study Unit 14, p. 109).
Business carried on with the object of making a profit: TLA Office Supplies was formed
specifically to sell office furniture and stationery for financial gain, satisfying this
requirement (FBE2604 Study Guide, Study Unit 14, p. 109).
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, The contract must be legitimate: The partnership agreement is lawful, and the parties
have contractual capacity.
The fact that Aisha was excluded from management does not affect the validity of the
partnership. Such an exclusion is a naturalia (a natural consequence of the agreement
that partners are free to alter) and not an essentialium. The partnership agreement is
valid, and all three are partners in law, despite the internal restriction on Aisha's
management powers (FBE2604 Study Guide, Study Unit 14, p. 110).
A valid partnership existed between Thabo, Lerato and Aisha.
1.2 The liability of the partners for partnership debts while the partnership existed
During the subsistence of a partnership, the partners are jointly liable for all debts and
liabilities of the partnership. This means that creditors of the partnership must sue all the
partners together and cannot sue one partner individually for the full debt while the
partnership is still in existence (FBE2604 Study Guide, Study Unit 16, p. 118).
Aisha's authority to bind the partnership
Although Aisha was excluded from management by the partnership agreement, she had
implied authority (the principle of mutual mandate) to bind the partnership in
transactions that fall within the ordinary scope of the partnership business (FBE2604
Study Guide, Study Unit 16, p. 118). The purchase of office furniture for resale falls
squarely within the business of TLA Office Supplies. Since Office World was unaware of
the internal restriction on Aisha's authority, they are a bona fide third party. The
partnership is bound by the contract, and all partners are jointly liable for the R60 000
debt (FBE2604 Study Guide, Study Unit 16, p. 118).
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DUE AUGUST 2026
1.1 Whether a valid partnership existed
A partnership is defined as a legal relationship created by contract between two or more
persons, in which each partner agrees to make some contribution to the partnership
business, which is carried on for the joint benefit of the parties with the object of making
a profit (Pezzutto v Dreyer and others 1992 (3) SA 397 (A);The essential elements
(essentialia) of a partnership, as outlined in the study material, are contribution, joint
benefit, profit motive, and a legitimate contract (FBE2604 Study Guide, Study Unit 14, p.
109).
Contribution by each partner
Each partner must contribute something of economic value, such as money, property,
skill, or knowledge (FBE2604 Study Guide, Study Unit 14, p. 109). Thabo, Lerato and
Aisha each contributed R30 000 in cash, which fully satisfies this requirement.
Business carried on for the joint benefit of the parties: Each partner must be entitled to
share in the net profits. Their agreement to share profits equally satisfies this essential
element (FBE2604 Study Guide, Study Unit 14, p. 109).
Business carried on with the object of making a profit: TLA Office Supplies was formed
specifically to sell office furniture and stationery for financial gain, satisfying this
requirement (FBE2604 Study Guide, Study Unit 14, p. 109).
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, The contract must be legitimate: The partnership agreement is lawful, and the parties
have contractual capacity.
The fact that Aisha was excluded from management does not affect the validity of the
partnership. Such an exclusion is a naturalia (a natural consequence of the agreement
that partners are free to alter) and not an essentialium. The partnership agreement is
valid, and all three are partners in law, despite the internal restriction on Aisha's
management powers (FBE2604 Study Guide, Study Unit 14, p. 110).
A valid partnership existed between Thabo, Lerato and Aisha.
1.2 The liability of the partners for partnership debts while the partnership existed
During the subsistence of a partnership, the partners are jointly liable for all debts and
liabilities of the partnership. This means that creditors of the partnership must sue all the
partners together and cannot sue one partner individually for the full debt while the
partnership is still in existence (FBE2604 Study Guide, Study Unit 16, p. 118).
Aisha's authority to bind the partnership
Although Aisha was excluded from management by the partnership agreement, she had
implied authority (the principle of mutual mandate) to bind the partnership in
transactions that fall within the ordinary scope of the partnership business (FBE2604
Study Guide, Study Unit 16, p. 118). The purchase of office furniture for resale falls
squarely within the business of TLA Office Supplies. Since Office World was unaware of
the internal restriction on Aisha's authority, they are a bona fide third party. The
partnership is bound by the contract, and all partners are jointly liable for the R60 000
debt (FBE2604 Study Guide, Study Unit 16, p. 118).
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