MRL2601
ASSIGNMENT 1
DUE DATE: 6 MARCH 2026
, MRL2601 ASSIGNMENT 1 MEMO 2026
DUE MARCH 2026
Question 1
1.1 Ben is a young aviation specialist who is passionate about aircraft and aviation
law. In his professional pursuits, he has decided to establish a company or form a
partnership with a colleague that would enhance the global aspect of aviation
within the area of corporate law. Ben decides to approach you for advice about a
partnership and a company. Advise Ben on the difference between a partnership
and a company.
(Textbook Chapter 15 paras 3–4.3; Joubert v Tarry and Co 1915 TPD 277)
When establishing a business, one of the most critical choices an entrepreneur must
make concerns the legal form the enterprise will take. For Ben, a young aviation
specialist with ambitions to operate within the international and corporate aviation sphere,
deciding between a partnership and a company is particularly important. Although both
business forms allow individuals to trade and earn profits, they differ markedly with
regard to legal status, method of formation, liability, ownership, continuity, authority, and
regulatory compliance.
A key distinction between a company and a partnership lies in legal personality. A
company is recognised as a separate legal entity, distinct from its shareholders. As a
juristic person, it is capable of owning assets, concluding contracts, assuming liabilities,
and litigating in its own name. This separation limits the personal exposure of
shareholders, as company debts do not automatically become their personal obligations.
ASSIGNMENT 1
DUE DATE: 6 MARCH 2026
, MRL2601 ASSIGNMENT 1 MEMO 2026
DUE MARCH 2026
Question 1
1.1 Ben is a young aviation specialist who is passionate about aircraft and aviation
law. In his professional pursuits, he has decided to establish a company or form a
partnership with a colleague that would enhance the global aspect of aviation
within the area of corporate law. Ben decides to approach you for advice about a
partnership and a company. Advise Ben on the difference between a partnership
and a company.
(Textbook Chapter 15 paras 3–4.3; Joubert v Tarry and Co 1915 TPD 277)
When establishing a business, one of the most critical choices an entrepreneur must
make concerns the legal form the enterprise will take. For Ben, a young aviation
specialist with ambitions to operate within the international and corporate aviation sphere,
deciding between a partnership and a company is particularly important. Although both
business forms allow individuals to trade and earn profits, they differ markedly with
regard to legal status, method of formation, liability, ownership, continuity, authority, and
regulatory compliance.
A key distinction between a company and a partnership lies in legal personality. A
company is recognised as a separate legal entity, distinct from its shareholders. As a
juristic person, it is capable of owning assets, concluding contracts, assuming liabilities,
and litigating in its own name. This separation limits the personal exposure of
shareholders, as company debts do not automatically become their personal obligations.
