PROPERTY OF
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PREVIEW:
Question 1 [10 Marks]
Advice on Validity of Proposed Partnership Agreement
A partnership is defined as “the relationship which exists between persons carrying on a
business in common with the object of making a profit” (Butters v Mncora 2012 (4) SA 1
(SCA)). For a valid partnership to exist under South African law, the following requirements
must be met:
1. Each party must bring something into the partnership (money, goods, or labour).
2. The business must be carried on for the joint benefit of all partners.
3. The object must be to make a profit.
4. The agreement must be lawful (Hahlo, South African Law of Partnership, 1974).
Analysis of the proposed contributions from each party:
Sello’s Contribution:
Sello intends to contribute R25 000 on condition that if the partnership fails, Ndumi and
Freddy reimburse him. This contribution is problematic because he is not prepared to
share the risk of loss inherent in a partnership. In Robson v Theron 1978 (1) SA 841 (A),
Disclaimer:
The materials provided
the court held are
thatintended for excludes
if a party educational and informational
themselves purposes
from liability foronly. Theythey are not a
losses,
should not be submitted as original work or used in violation of any academic institution's
true partner but rather a lender or creditor. Therefore, Sello’s contribution does not meet
policies. The buyer is solely responsible for how the materials are used.
the requirement of contribution with shared risk, making him akin to an external financier
rather than a partner.
Contact details:
VarsityTimes
Feel free to contact us if you need:
https://t.me/varsity_times
• Personal and unique assignments.
• Help with a specific question. +27 79 813 2475
PREVIEW:
Question 1 [10 Marks]
Advice on Validity of Proposed Partnership Agreement
A partnership is defined as “the relationship which exists between persons carrying on a
business in common with the object of making a profit” (Butters v Mncora 2012 (4) SA 1
(SCA)). For a valid partnership to exist under South African law, the following requirements
must be met:
1. Each party must bring something into the partnership (money, goods, or labour).
2. The business must be carried on for the joint benefit of all partners.
3. The object must be to make a profit.
4. The agreement must be lawful (Hahlo, South African Law of Partnership, 1974).
Analysis of the proposed contributions from each party:
Sello’s Contribution:
Sello intends to contribute R25 000 on condition that if the partnership fails, Ndumi and
Freddy reimburse him. This contribution is problematic because he is not prepared to
share the risk of loss inherent in a partnership. In Robson v Theron 1978 (1) SA 841 (A),
Disclaimer:
The materials provided
the court held are
thatintended for excludes
if a party educational and informational
themselves purposes
from liability foronly. Theythey are not a
losses,
should not be submitted as original work or used in violation of any academic institution's
true partner but rather a lender or creditor. Therefore, Sello’s contribution does not meet
policies. The buyer is solely responsible for how the materials are used.
the requirement of contribution with shared risk, making him akin to an external financier
rather than a partner.
