, CLA2601 Assignment 1 Semester 1 2025 (Unique Number:
770912) - DUE 7 April 2025 ;100 %. TRUSTED Complete,
trusted solutions and explanations….WE WISH YOU A
GOOD LUCK
Question 1 Zane, Bongi, Muthu and Sophy are friends who
decide to form a partnership to purchase and sell new and
secondhand mobile phones. Sophy and Bongi will provide the
capital to purchase the initial stock for the partnership. Zane will
be responsible for the repair of mobile phones and Muthu will
be responsible for the day-to-day activities regarding the sales,
administration and marketing of the mobile phone business. The
parties agree that the profit derived from the partnership will be
divided equally between Bongi, Sophy and Zane, and that
Muthu will receive a monthly salary for his services. Discuss
and explain whether the above terms constitute a valid
partnership agreement. Refer to relevant case law in your
answer. 10 marks
Introduction to Partnership Law:
A partnership is an agreement between two or more individuals
to carry on a business for profit. According to the South African
Partnership Act 31 of 1934, a partnership is formed when two or
more persons come together with the common intention of
sharing the profits and losses of a business. It is essential that the
partners are in agreement about the partnership’s goals, roles,
and profit-sharing arrangements.
In this scenario, Zane, Bongi, Muthu, and Sophy are considering
forming a partnership to purchase and sell mobile phones. To
770912) - DUE 7 April 2025 ;100 %. TRUSTED Complete,
trusted solutions and explanations….WE WISH YOU A
GOOD LUCK
Question 1 Zane, Bongi, Muthu and Sophy are friends who
decide to form a partnership to purchase and sell new and
secondhand mobile phones. Sophy and Bongi will provide the
capital to purchase the initial stock for the partnership. Zane will
be responsible for the repair of mobile phones and Muthu will
be responsible for the day-to-day activities regarding the sales,
administration and marketing of the mobile phone business. The
parties agree that the profit derived from the partnership will be
divided equally between Bongi, Sophy and Zane, and that
Muthu will receive a monthly salary for his services. Discuss
and explain whether the above terms constitute a valid
partnership agreement. Refer to relevant case law in your
answer. 10 marks
Introduction to Partnership Law:
A partnership is an agreement between two or more individuals
to carry on a business for profit. According to the South African
Partnership Act 31 of 1934, a partnership is formed when two or
more persons come together with the common intention of
sharing the profits and losses of a business. It is essential that the
partners are in agreement about the partnership’s goals, roles,
and profit-sharing arrangements.
In this scenario, Zane, Bongi, Muthu, and Sophy are considering
forming a partnership to purchase and sell mobile phones. To
