, CLA2601 Assignment 2 (COMPLETE ANSWERS)
Semester 1 2025 (770920)- DUE 16 April 2025; 100%
TRUSTED Complete, trusted solutions and
explanations. For assistance,
Question 1
Lesego and Phumudzo are the trustees of the Build Your Own
Home Trust, which carries on its business in the construction
industry. Even though the trust deed of Build Your Own Home
Trust does not explicitly authorise the trustee/s to purchase a
back actor to excavate and prepare building sites for construction,
Lesego and Phumudzo purchase a back actor for the Trust.
Considering the requirement that trustees must preserve trust
assets, discuss whether Lesego and Phumudzo have acted
lawfully. 5 marks
1. Legal Framework for Trustees in South African Law
South African trust law is primarily governed by:
The Trust Property Control Act 57 of 1988, and
Common law principles developed through case law.
Trustees have a fiduciary duty to act in the best interests of the trust
and its beneficiaries, to exercise their powers with care, diligence, and
skill, and to act within the limits of the powers conferred on them by
the trust deed.
Semester 1 2025 (770920)- DUE 16 April 2025; 100%
TRUSTED Complete, trusted solutions and
explanations. For assistance,
Question 1
Lesego and Phumudzo are the trustees of the Build Your Own
Home Trust, which carries on its business in the construction
industry. Even though the trust deed of Build Your Own Home
Trust does not explicitly authorise the trustee/s to purchase a
back actor to excavate and prepare building sites for construction,
Lesego and Phumudzo purchase a back actor for the Trust.
Considering the requirement that trustees must preserve trust
assets, discuss whether Lesego and Phumudzo have acted
lawfully. 5 marks
1. Legal Framework for Trustees in South African Law
South African trust law is primarily governed by:
The Trust Property Control Act 57 of 1988, and
Common law principles developed through case law.
Trustees have a fiduciary duty to act in the best interests of the trust
and its beneficiaries, to exercise their powers with care, diligence, and
skill, and to act within the limits of the powers conferred on them by
the trust deed.
