MRL2601 Assignment 1 Semester 1 2026 (Answer Guide) - DUE 6
March 2026
VERIFIED AND CERTIFIED ANSWERS. WRITTEN IN REQUIRED FORMAT AND WITHIN
GIVEN GUIDELINES. IT IS GOOD TO USE AS A GUIDE AND FOR REFERENCE, NEVER
PLAGARIZE. Thank you and success in your academics.
UNISA, 2025
Contents
QUESTION 1 .............................................................................................................................................. 2
Question 1.1........................................................................................................................................... 2
Introduction ....................................................................................................................................... 2
1. Legal personality ............................................................................................................................. 2
2. Formation and registration ........................................................................................................... 2
3. Liability of members ....................................................................................................................... 3
4. Continuity and existence ............................................................................................................... 3
5. Ownership and management........................................................................................................ 4
6. Transferability of interests ............................................................................................................ 4
Conclusion ............................................................................................................................................. 4
References ......................................................................................................................................... 4
QUESTION 2 .............................................................................................................................................. 5
Question 2.1: Legal nature of a trust .............................................................................................. 5
Explanation ........................................................................................................................................ 5
Question 2.2: Legal position of a founder in a trust ................................................................... 5
Explanation ........................................................................................................................................ 5
Conclusion ............................................................................................................................................. 6
References ......................................................................................................................................... 6
, QUESTION 1
Question 1.1
Introduction
Ben seeks legal advice on whether to establish a partnership or a company in pursuit
of his interest in aviation and corporate law with a global dimension. The choice of
business form has significant legal consequences, particularly regarding legal
personality, liability, formation, continuity, management, and ownership. This
answer advises Ben by discussing the key differences between a partnership and a
company under South African law.
1. Legal personality
A partnership does not have separate legal personality from its partners. It is merely
a legal relationship between two or more persons who agree to carry on a business
together for profit. As a result, the partnership cannot exist independently of its partners.
By contrast, a company is a separate juristic person from its shareholders once it is
incorporated in terms of the Companies Act 71 of 2008. This means the company has
its own legal identity, separate from the individuals who own or manage it. It can own
property, enter into contracts, and sue or be sued in its own name.
2. Formation and registration
A partnership is formed through an agreement between the partners. No formal
registration is required, although a written partnership agreement is advisable for clarity
and certainty.
A company, on the other hand, comes into existence only after it is registered with the
Companies and Intellectual Property Commission (CIPC). Incorporation requires
compliance with statutory formalities, including the filing of a Memorandum of
Incorporation (MOI).
March 2026
VERIFIED AND CERTIFIED ANSWERS. WRITTEN IN REQUIRED FORMAT AND WITHIN
GIVEN GUIDELINES. IT IS GOOD TO USE AS A GUIDE AND FOR REFERENCE, NEVER
PLAGARIZE. Thank you and success in your academics.
UNISA, 2025
Contents
QUESTION 1 .............................................................................................................................................. 2
Question 1.1........................................................................................................................................... 2
Introduction ....................................................................................................................................... 2
1. Legal personality ............................................................................................................................. 2
2. Formation and registration ........................................................................................................... 2
3. Liability of members ....................................................................................................................... 3
4. Continuity and existence ............................................................................................................... 3
5. Ownership and management........................................................................................................ 4
6. Transferability of interests ............................................................................................................ 4
Conclusion ............................................................................................................................................. 4
References ......................................................................................................................................... 4
QUESTION 2 .............................................................................................................................................. 5
Question 2.1: Legal nature of a trust .............................................................................................. 5
Explanation ........................................................................................................................................ 5
Question 2.2: Legal position of a founder in a trust ................................................................... 5
Explanation ........................................................................................................................................ 5
Conclusion ............................................................................................................................................. 6
References ......................................................................................................................................... 6
, QUESTION 1
Question 1.1
Introduction
Ben seeks legal advice on whether to establish a partnership or a company in pursuit
of his interest in aviation and corporate law with a global dimension. The choice of
business form has significant legal consequences, particularly regarding legal
personality, liability, formation, continuity, management, and ownership. This
answer advises Ben by discussing the key differences between a partnership and a
company under South African law.
1. Legal personality
A partnership does not have separate legal personality from its partners. It is merely
a legal relationship between two or more persons who agree to carry on a business
together for profit. As a result, the partnership cannot exist independently of its partners.
By contrast, a company is a separate juristic person from its shareholders once it is
incorporated in terms of the Companies Act 71 of 2008. This means the company has
its own legal identity, separate from the individuals who own or manage it. It can own
property, enter into contracts, and sue or be sued in its own name.
2. Formation and registration
A partnership is formed through an agreement between the partners. No formal
registration is required, although a written partnership agreement is advisable for clarity
and certainty.
A company, on the other hand, comes into existence only after it is registered with the
Companies and Intellectual Property Commission (CIPC). Incorporation requires
compliance with statutory formalities, including the filing of a Memorandum of
Incorporation (MOI).
