FBE2604 Assignment 1 Semester 1 2026 (Answer Guide) - DUE 24
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
The Existence of a Valid Partnership: An Analysis of Essentialia and Relevant Case Law 2
1. Introduction ....................................................................................................................................... 2
2. The Legal Nature of a Partnership in South African Law ..................................................... 2
3. The Essentialia of a Valid Partnership Agreement ................................................................. 2
3.1 Contribution by Each Partner ................................................................................................ 2
3.2 Joint Benefit and Profit Motive .............................................................................................. 3
3.3 Sharing of Profits and Losses ............................................................................................... 4
4. Intention of the Parties (Animus Contrahendi) ........................................................................ 4
5. Legal Characterisation of the Relationship .............................................................................. 5
6. Conclusion ........................................................................................................................................ 5
References ............................................................................................................................................. 6
, The Existence of a Valid Partnership: An Analysis of Essentialia and Relevant
Case Law
1. Introduction
Partnerships are among the most common forms of business associations in South
Africa, particularly where individuals pool resources, skills, or capital to pursue a profit-
making enterprise. However, disputes frequently arise where parties have not reduced
their agreement to writing, resulting in uncertainty regarding their legal relationship. This
essay analyses whether a valid partnership exists between Thabo and Lerato, with
reference to the essentialia of a partnership agreement and relevant South African
case law. The discussion will evaluate the contributions made by each party, the
intention of the parties, the sharing of profits and losses, and the legal consequences of
Thabo’s claim that Lerato should share in the losses of the business.
2. The Legal Nature of a Partnership in South African Law
In South African law, a partnership is a contractual relationship and is primarily
governed by Roman-Dutch common law, supplemented by judicial interpretation. A
partnership does not require a written agreement and may be formed tacitly or
verbally, provided that the essential elements are present (Joubert & Faris, 2016).
The classic definition of a partnership was articulated in Joubert v Tarry & Co 1915 TPD
277, where the court held that a partnership arises where parties agree to combine their
resources or efforts for a joint business venture with the object of making a profit.
3. The Essentialia of a Valid Partnership Agreement
South African courts consistently recognise three essential elements (essentialia)
that must be present for a valid partnership to exist. These were authoritatively set out
in Pezzutto v Dreyer 1992 (3) SA 379 (A).
3.1 Contribution by Each Partner
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
The Existence of a Valid Partnership: An Analysis of Essentialia and Relevant Case Law 2
1. Introduction ....................................................................................................................................... 2
2. The Legal Nature of a Partnership in South African Law ..................................................... 2
3. The Essentialia of a Valid Partnership Agreement ................................................................. 2
3.1 Contribution by Each Partner ................................................................................................ 2
3.2 Joint Benefit and Profit Motive .............................................................................................. 3
3.3 Sharing of Profits and Losses ............................................................................................... 4
4. Intention of the Parties (Animus Contrahendi) ........................................................................ 4
5. Legal Characterisation of the Relationship .............................................................................. 5
6. Conclusion ........................................................................................................................................ 5
References ............................................................................................................................................. 6
, The Existence of a Valid Partnership: An Analysis of Essentialia and Relevant
Case Law
1. Introduction
Partnerships are among the most common forms of business associations in South
Africa, particularly where individuals pool resources, skills, or capital to pursue a profit-
making enterprise. However, disputes frequently arise where parties have not reduced
their agreement to writing, resulting in uncertainty regarding their legal relationship. This
essay analyses whether a valid partnership exists between Thabo and Lerato, with
reference to the essentialia of a partnership agreement and relevant South African
case law. The discussion will evaluate the contributions made by each party, the
intention of the parties, the sharing of profits and losses, and the legal consequences of
Thabo’s claim that Lerato should share in the losses of the business.
2. The Legal Nature of a Partnership in South African Law
In South African law, a partnership is a contractual relationship and is primarily
governed by Roman-Dutch common law, supplemented by judicial interpretation. A
partnership does not require a written agreement and may be formed tacitly or
verbally, provided that the essential elements are present (Joubert & Faris, 2016).
The classic definition of a partnership was articulated in Joubert v Tarry & Co 1915 TPD
277, where the court held that a partnership arises where parties agree to combine their
resources or efforts for a joint business venture with the object of making a profit.
3. The Essentialia of a Valid Partnership Agreement
South African courts consistently recognise three essential elements (essentialia)
that must be present for a valid partnership to exist. These were authoritatively set out
in Pezzutto v Dreyer 1992 (3) SA 379 (A).
3.1 Contribution by Each Partner
