, FBE2604 Assignment 1 (COMPLETE ANSWERS) Semester
2 2026 – DUE 19 August 2026; 100% Correct solutions and
explanations.
Question 1
1.1 Whether a valid partnership existed
A valid partnership existed between Thabo, Lerato and Aisha because all the
common-law requirements for the formation of a partnership were satisfied.
In South African law, a partnership is a contractual relationship between two
or more persons who agree to carry on a business together for their joint
benefit with the aim of making a profit. The traditional requirements for a
valid partnership were established in Joubert v Tarry & Co 1915 TPD 277
and remain applicable.
The requirements are as follows:
(a) Each partner must contribute something to the partnership
Each partner contributed R30 000 towards establishing TLA Office Supplies.
A contribution may consist of money, property, labour, skill or services. In
this case, each partner made a financial contribution, satisfying this
requirement.
(b) The business must be carried on for the joint benefit of all partners
The partnership was established jointly by Thabo, Lerato and Aisha to trade
in office furniture and stationery. The business was intended to benefit all
three partners collectively. Although Aisha was excluded from management,
she remained a partner with an ownership interest in the partnership.
Management rights and ownership rights are separate issues. A partner may
be excluded from management without losing his or her status as a partner.
(c) The object of the partnership must be to make a profit
2 2026 – DUE 19 August 2026; 100% Correct solutions and
explanations.
Question 1
1.1 Whether a valid partnership existed
A valid partnership existed between Thabo, Lerato and Aisha because all the
common-law requirements for the formation of a partnership were satisfied.
In South African law, a partnership is a contractual relationship between two
or more persons who agree to carry on a business together for their joint
benefit with the aim of making a profit. The traditional requirements for a
valid partnership were established in Joubert v Tarry & Co 1915 TPD 277
and remain applicable.
The requirements are as follows:
(a) Each partner must contribute something to the partnership
Each partner contributed R30 000 towards establishing TLA Office Supplies.
A contribution may consist of money, property, labour, skill or services. In
this case, each partner made a financial contribution, satisfying this
requirement.
(b) The business must be carried on for the joint benefit of all partners
The partnership was established jointly by Thabo, Lerato and Aisha to trade
in office furniture and stationery. The business was intended to benefit all
three partners collectively. Although Aisha was excluded from management,
she remained a partner with an ownership interest in the partnership.
Management rights and ownership rights are separate issues. A partner may
be excluded from management without losing his or her status as a partner.
(c) The object of the partnership must be to make a profit
