MRL2601
Assignment 1 Semester 2 2026
Due Date: 11 August 2026
Question 1
1.1 Marcus’ remedy regarding the goodwill
Marcus has a remedy against Cobus because the partnership’s goodwill forms part of the
partnership assets that must be dealt with during liquidation. The goodwill includes the
commercial value created by the partnership’s reputation and established client connections.
Since the partnership agreement does not award the goodwill to Cobus, he may not
appropriate the entire client base for his personal benefit without accounting to Marcus.
, Question 1
1.1 Marcus’ remedy regarding the goodwill
Marcus has a remedy against Cobus because the partnership’s goodwill forms part
of the partnership assets that must be dealt with during liquidation. The goodwill
includes the commercial value created by the partnership’s reputation and
established client connections. Since the partnership agreement does not award the
goodwill to Cobus, he may not appropriate the entire client base for his personal
benefit without accounting to Marcus.
Although the partnership was dissolved by agreement, the fiduciary relationship
between the partners continues until the partnership estate has been fully liquidated
and a final settlement has taken place. A former partner who improperly acquires a
partnership asset or benefit during liquidation breaches this continuing duty and must
share the resulting benefit with the other partner (Delport, 2014:339). Cobus’
unilateral takeover of clients valued at R1 million therefore amounts to the
appropriation of a partnership benefit.
Marcus may institute the actio pro socio, which allows a partner to enforce rights
arising from the partnership relationship, including rights after dissolution, the
rendering of accounts and liquidation of the partnership estate (Delport, 2014:324–
325). He may claim a proper account, valuation of the goodwill and payment of his
agreed share. If the partners shared profits equally, Marcus would ordinarily be
entitled to R500 000, subject to the final liquidation account and any partnership
liabilities.
1.2 Five reasons for terminating a partnership
A partnership may be terminated when the period for which it was created expires. It
may also end when the particular undertaking or business project for which it was
formed has been completed. The partners may dissolve it through mutual
agreement, as Marcus and Cobus have done. A change in membership, such as the
retirement, death or admission of a partner, ordinarily dissolves the existing
partnership because a partnership depends upon the identities of its members.
Lastly, the partnership may terminate when the partnership estate or the estate of
Assignment 1 Semester 2 2026
Due Date: 11 August 2026
Question 1
1.1 Marcus’ remedy regarding the goodwill
Marcus has a remedy against Cobus because the partnership’s goodwill forms part of the
partnership assets that must be dealt with during liquidation. The goodwill includes the
commercial value created by the partnership’s reputation and established client connections.
Since the partnership agreement does not award the goodwill to Cobus, he may not
appropriate the entire client base for his personal benefit without accounting to Marcus.
, Question 1
1.1 Marcus’ remedy regarding the goodwill
Marcus has a remedy against Cobus because the partnership’s goodwill forms part
of the partnership assets that must be dealt with during liquidation. The goodwill
includes the commercial value created by the partnership’s reputation and
established client connections. Since the partnership agreement does not award the
goodwill to Cobus, he may not appropriate the entire client base for his personal
benefit without accounting to Marcus.
Although the partnership was dissolved by agreement, the fiduciary relationship
between the partners continues until the partnership estate has been fully liquidated
and a final settlement has taken place. A former partner who improperly acquires a
partnership asset or benefit during liquidation breaches this continuing duty and must
share the resulting benefit with the other partner (Delport, 2014:339). Cobus’
unilateral takeover of clients valued at R1 million therefore amounts to the
appropriation of a partnership benefit.
Marcus may institute the actio pro socio, which allows a partner to enforce rights
arising from the partnership relationship, including rights after dissolution, the
rendering of accounts and liquidation of the partnership estate (Delport, 2014:324–
325). He may claim a proper account, valuation of the goodwill and payment of his
agreed share. If the partners shared profits equally, Marcus would ordinarily be
entitled to R500 000, subject to the final liquidation account and any partnership
liabilities.
1.2 Five reasons for terminating a partnership
A partnership may be terminated when the period for which it was created expires. It
may also end when the particular undertaking or business project for which it was
formed has been completed. The partners may dissolve it through mutual
agreement, as Marcus and Cobus have done. A change in membership, such as the
retirement, death or admission of a partner, ordinarily dissolves the existing
partnership because a partnership depends upon the identities of its members.
Lastly, the partnership may terminate when the partnership estate or the estate of
