CLA2601
ASSIGNMENT 1 SEMESTER 1 2025
UNIQUE NO. 770912
DUE DATE: 7 APRIL 2025
, CLA2601
Assignment 1 Semester 1 2025
Unique No. 770912
Due Date: 7 April 2025
Commercial Law IIA
Question 1: Validity of the Partnership Agreement
In South African law, a partnership is a legal relationship between two or more people
who agree to contribute something (such as money, skills, or labor) towards a business
venture with the aim of making a profit, which they will then share. This definition is
based on case law such as Pezzutto v Dreyer (1992) and Pothier’s definition of
partnership which has been adopted in South African law.
To determine whether Zane, Bongi, Muthu, and Sophy’s agreement constitutes a valid
partnership, we must check if it meets the four essential requirements:
1. Each partner must contribute something to the partnership
o Bongi and Sophy are providing the capital, which is their contribution.
o Zane is offering his skills in repairing mobile phones.
o Muthu is handling sales, administration, and marketing, but instead of
sharing profits, he receives a salary.
2. The business must be carried on for joint benefit
o The three partners (Bongi, Sophy, and Zane) will share the profits, which
means they are working for a common financial goal.
o However, Muthu is only earning a salary, which suggests he may not be
considered a full partner under the law. This could indicate that he is more
of an employee than a partner.
3. The objective must be to make a profit
ASSIGNMENT 1 SEMESTER 1 2025
UNIQUE NO. 770912
DUE DATE: 7 APRIL 2025
, CLA2601
Assignment 1 Semester 1 2025
Unique No. 770912
Due Date: 7 April 2025
Commercial Law IIA
Question 1: Validity of the Partnership Agreement
In South African law, a partnership is a legal relationship between two or more people
who agree to contribute something (such as money, skills, or labor) towards a business
venture with the aim of making a profit, which they will then share. This definition is
based on case law such as Pezzutto v Dreyer (1992) and Pothier’s definition of
partnership which has been adopted in South African law.
To determine whether Zane, Bongi, Muthu, and Sophy’s agreement constitutes a valid
partnership, we must check if it meets the four essential requirements:
1. Each partner must contribute something to the partnership
o Bongi and Sophy are providing the capital, which is their contribution.
o Zane is offering his skills in repairing mobile phones.
o Muthu is handling sales, administration, and marketing, but instead of
sharing profits, he receives a salary.
2. The business must be carried on for joint benefit
o The three partners (Bongi, Sophy, and Zane) will share the profits, which
means they are working for a common financial goal.
o However, Muthu is only earning a salary, which suggests he may not be
considered a full partner under the law. This could indicate that he is more
of an employee than a partner.
3. The objective must be to make a profit
