CLA2601 Assignment 2 (COMPLETE ANSWERS) Semester 1 2025 - DUE 16 April 2025

, CLA2601 Assignment 2 (COMPLETE ANSWERS)
Semester 1 2025 - DUE 16 April 2025


Question 1 Lesego and Phumudzo are the trustees of the Build
Your Own Home Trust, which carries on its business in the
construction industry. Even though the trust deed of Build Your
Own Home Trust does not explicitly authorise the trustee/s to
purchase a back actor to excavate and prepare building sites for
construction, Lesego and Phumudzo purchase a back actor for
the Trust. Considering the requirement that trustees must
preserve trust assets, discuss whether Lesego and Phumudzo
have acted lawfully. 5 marks


Analysis of the Lawfulness of Lesego and Phumudzo’s
Actions
The issue in question pertains to the scope of authority
exercised by trustees in managing trust assets and
whether their actions align with their fiduciary duties and
the provisions of the trust deed. Specifically, we must
assess whether Lesego and Phumudzo acted lawfully in
purchasing a back actor (a type of excavator) for the
Build Your Own Home Trust, despite the trust deed not
explicitly authorising such a purchase.