MRL2601
Assignment 1 Semester 2 2025
Unique Number:
Due Date: August 2025
QUESTION 1
A partnership is defined as a legal relationship arising from an agreement between two or
more persons who undertake to contribute to a joint enterprise with the intention of making
and sharing profits for their mutual benefit. This is governed by the essentialia of partnership,
as affirmed in Bester v Van Niekerk 1960 (2) SA 779 (A), which requires: (1) a contribution
by each partner; (2) a common goal of making profit; and (3) carrying on business for mutual
benefit.
In this case:
Sello’s Contribution: Sello offers R25 000 on the condition that he will be reimbursed
if the partnership fails. This does not meet the requirement of a true partnership
contribution, as his money is not exposed to the business risk. If he is guaranteed
repayment regardless of success, he acts more like a creditor than a partner (Nagel,
2011:44). His participation is therefore not valid for establishing a partnership.
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By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
Assignment 1 Semester 2 2025
Unique Number:
Due Date: August 2025
QUESTION 1
A partnership is defined as a legal relationship arising from an agreement between two or
more persons who undertake to contribute to a joint enterprise with the intention of making
and sharing profits for their mutual benefit. This is governed by the essentialia of partnership,
as affirmed in Bester v Van Niekerk 1960 (2) SA 779 (A), which requires: (1) a contribution
by each partner; (2) a common goal of making profit; and (3) carrying on business for mutual
benefit.
In this case:
Sello’s Contribution: Sello offers R25 000 on the condition that he will be reimbursed
if the partnership fails. This does not meet the requirement of a true partnership
contribution, as his money is not exposed to the business risk. If he is guaranteed
repayment regardless of success, he acts more like a creditor than a partner (Nagel,
2011:44). His participation is therefore not valid for establishing a partnership.
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
