MRL2601
ASSIGNMENT 1
DUE DATE: 13 AUGUST 2025
, MRL2601 ASSIGNMENT 1 2025
SEMESTER 2 2025
DUE 13 AUGUST 2025
Question 1
Themba, Ndumi and Freddy want to start a partnership with the aim of selling Solar batteries.
Sello intends to contribute R25 000.00 on condition that should the partnership fail, Ndumi and
Freddy will reimburse him. Ndumi intends to contribute his expertise as an electrician. Freddy
intends to contribute the use of his Hilux pickup truck. They come to you for advice on whether
a partnership agreement will be valid based on what each of them wants to contribute.
Advise them fully. (In your advice, define a partnership, deal with each contribution and
conclude.)
In terms of the common law of partnership in South Africa, a partnership is a contractual
relationship between two or more persons who agree to make some contribution to a business
carried on for their joint benefit with the object of making a profit. As held in Pezzutto v Dreyer¹,
each partner must contribute something of economic value, share in both profit and loss, and
expose that contribution to the risks of the enterprise.
1. Definition of a Partnership
Essentialia (Joubert v Tarry & Co):
Contribution by each partner (money, property, skill, etc.), exposed to business risk (para 4.1).
Business carried on for the joint benefit of all partners (para 4.2).
Business carried on with the object of making a profit (para 4.3).
A legitimate contract in which the parties intend to form a partnership (para 4.4).
ASSIGNMENT 1
DUE DATE: 13 AUGUST 2025
, MRL2601 ASSIGNMENT 1 2025
SEMESTER 2 2025
DUE 13 AUGUST 2025
Question 1
Themba, Ndumi and Freddy want to start a partnership with the aim of selling Solar batteries.
Sello intends to contribute R25 000.00 on condition that should the partnership fail, Ndumi and
Freddy will reimburse him. Ndumi intends to contribute his expertise as an electrician. Freddy
intends to contribute the use of his Hilux pickup truck. They come to you for advice on whether
a partnership agreement will be valid based on what each of them wants to contribute.
Advise them fully. (In your advice, define a partnership, deal with each contribution and
conclude.)
In terms of the common law of partnership in South Africa, a partnership is a contractual
relationship between two or more persons who agree to make some contribution to a business
carried on for their joint benefit with the object of making a profit. As held in Pezzutto v Dreyer¹,
each partner must contribute something of economic value, share in both profit and loss, and
expose that contribution to the risks of the enterprise.
1. Definition of a Partnership
Essentialia (Joubert v Tarry & Co):
Contribution by each partner (money, property, skill, etc.), exposed to business risk (para 4.1).
Business carried on for the joint benefit of all partners (para 4.2).
Business carried on with the object of making a profit (para 4.3).
A legitimate contract in which the parties intend to form a partnership (para 4.4).
