MRL2601
Assignment 1
Semester 2
Due August 2025
, MRL2601
Assignment 1
Semester 2
Due 2025
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
Under South African common law, a partnership is defined as a legal relationship
between two or more persons who agree to carry on an enterprise jointly with the
purpose of making a profit. This relationship is grounded in consensus and mutual
obligations, and it is governed primarily by common law principles rather than specific
legislation.
For a partnership to be valid, four essential elements must be satisfied (Joubert &
Van Reenen, 2016):
1. Contribution by Each Party:
Each partner must contribute something of value to the partnership. This
contribution may take the form of capital, labour, skills, or assets,
demonstrating their commitment to the business venture.
2. Intention to Carry on Business for Profit:
The parties must have the common intention to carry on a lawful business
with the purpose of generating profit. Without this intention, the relationship
cannot be classified as a partnership under South African law.
Assignment 1
Semester 2
Due August 2025
, MRL2601
Assignment 1
Semester 2
Due 2025
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
Under South African common law, a partnership is defined as a legal relationship
between two or more persons who agree to carry on an enterprise jointly with the
purpose of making a profit. This relationship is grounded in consensus and mutual
obligations, and it is governed primarily by common law principles rather than specific
legislation.
For a partnership to be valid, four essential elements must be satisfied (Joubert &
Van Reenen, 2016):
1. Contribution by Each Party:
Each partner must contribute something of value to the partnership. This
contribution may take the form of capital, labour, skills, or assets,
demonstrating their commitment to the business venture.
2. Intention to Carry on Business for Profit:
The parties must have the common intention to carry on a lawful business
with the purpose of generating profit. Without this intention, the relationship
cannot be classified as a partnership under South African law.
