, CLA2601 Assignment 1 Semester 1 2025 (770912) - DUE 7
April 2025 ;100 % correct explanations and solutions. {Two
answers provided in each Question}
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
Validity of the Partnership Agreement
1. Introduction
A partnership is a contractual relationship between two or more
persons who carry on a business with the common goal of
making a profit. In South African law, partnerships are governed
by common law principles and judicial precedents. To determine
whether the agreement between Zane, Bongi, Muthu, and Sophy
constitutes a valid partnership, it is necessary to assess whether
the essential elements of a partnership exist in this arrangement.
April 2025 ;100 % correct explanations and solutions. {Two
answers provided in each Question}
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
Validity of the Partnership Agreement
1. Introduction
A partnership is a contractual relationship between two or more
persons who carry on a business with the common goal of
making a profit. In South African law, partnerships are governed
by common law principles and judicial precedents. To determine
whether the agreement between Zane, Bongi, Muthu, and Sophy
constitutes a valid partnership, it is necessary to assess whether
the essential elements of a partnership exist in this arrangement.
