MRL2601 Assignment 1 Semester 2 (Comprehensive Answers) Due August 2025

MRL2601
Assignment 1
Semester 2
Due August 2025

, MRL2601

Assignment 1

Semester 2

Due 2025



ASSIGNMENT 1: SOUTH AFRICAN PARTNERSHIP AND TRUST LAW



Question 1

Legal Advice on the Validity of the Proposed Partnership Between Themba,
Ndumi, and Freddy



1. Defining a Valid Partnership in South African Law

According to South African common law, a partnership is a legal relationship between
two or more persons who agree to carry on a business together, make contributions (in
the form of capital, labour, or assets), and share profits and losses arising from the
venture. For a partnership to be valid, the following elements must be present (Joubert
& Van Reenen, 2016):

• Each party must make a contribution.

• The intention must be to carry on business for profit.

• There must be agreement to share in both profits and losses.

• The business must be conducted for the joint benefit of the partners.

These conditions promote equality and shared risk, ensuring that no partner is unjustly
enriched or protected at the expense of others.