MRL2601
Assignment 1 (Semester 1)
DUE 6 March 2026
QUESTION 1
Ben seeks advice on whether to establish a partnership or a company in order to pursue
his professional interests in aviation and corporate law. A partnership and a company
differ fundamentally in their legal nature, formation, liability, continuity, and
management.
A partnership is a contractual relationship between two or more persons who agree to
carry on a lawful business together with the intention of making and sharing a profit. 1 A
partnership does not have a separate legal personality from its partners, meaning that
the partnership and the partners are regarded as one and the same in law. 2 As a result,
partners are personally and jointly liable for the debts and obligations of the
partnership.3
If the partnership is unable to meet its obligations, creditors may claim against the
personal assets of the partners. A partnership also lacks perpetual succession and may
terminate upon the death, insolvency, or withdrawal of a partner, unless the partnership
agreement provides otherwise.4
1
JTR Gibson South African Mercantile and Company Law (LexisNexis) 55.
2
LAWSA Vol 19 (Partnership) para 1.
3
JTR Gibson South African Mercantile and Company Law 60.
4
LAWSA Vol 19 (Partnership) para 25.
Disclaimer:
All materials are for study assistance only. We do not condone academic dishonesty. Use at your own risk.
We are not liable for any consequences arising from misuse.
Redistribution, resale, or sharing without permission is prohibited.
Assignment 1 (Semester 1)
DUE 6 March 2026
QUESTION 1
Ben seeks advice on whether to establish a partnership or a company in order to pursue
his professional interests in aviation and corporate law. A partnership and a company
differ fundamentally in their legal nature, formation, liability, continuity, and
management.
A partnership is a contractual relationship between two or more persons who agree to
carry on a lawful business together with the intention of making and sharing a profit. 1 A
partnership does not have a separate legal personality from its partners, meaning that
the partnership and the partners are regarded as one and the same in law. 2 As a result,
partners are personally and jointly liable for the debts and obligations of the
partnership.3
If the partnership is unable to meet its obligations, creditors may claim against the
personal assets of the partners. A partnership also lacks perpetual succession and may
terminate upon the death, insolvency, or withdrawal of a partner, unless the partnership
agreement provides otherwise.4
1
JTR Gibson South African Mercantile and Company Law (LexisNexis) 55.
2
LAWSA Vol 19 (Partnership) para 1.
3
JTR Gibson South African Mercantile and Company Law 60.
4
LAWSA Vol 19 (Partnership) para 25.
Disclaimer:
All materials are for study assistance only. We do not condone academic dishonesty. Use at your own risk.
We are not liable for any consequences arising from misuse.
Redistribution, resale, or sharing without permission is prohibited.
