LML4806 Assignment 2 Semester 2 2025 (Detailed Answers) - DUE September 2025

LML4806 Assignment 2 Semester 2 2025 (Detailed Answers) - DUE September 2025 1 GENERAL INSTRUCTIONS • Assignments test your understanding of the learning material and your ability to apply what you have learnt. Two written assignments are set for this module i.e., Assignment 01 and Assignment 02. Answering these questions gives you practice in answering the type of questions that you may expect in the examination. • The marks you obtain for Assignment 01 and Assignment 02 make up your year mark. • You should answer all questions under each assignment. Your answer to each assignment should generally not exceed two and a half pages if it is typed (excluding the bibliography). • You may reference your sources as you wish (e.g., in-text or in the footnotes) but it is preferable that you reference your sources within the text of your answers. It is not mandatory to include a bibliography. You may include a bibliography at the end of your assignment voluntarily. However, you should remember to include your Honesty Declaration Form. • Refer to Paragraph 9 of your Tutorial Letter 101 for the general information about assessment. • Also refer to Paragraph 10 of your Tutorial Letter 101 for important information regarding academic dishonesty (plagiarism and cheating). • You should study and refer to the prescribed study material (textbook, Companies Act 71 of 2008, and tutorial letters, prescribed cases, information that is provided on the module site under “Additional resources” etc) when answering your assignments. You should not use Artificial Intelligence Software (e.g., ChatGPT) to give you answers to the assignment questions as this will prevent you from achieving the learning objectives as well as attaining all the skills and values needed in legal practice. Artificial Intelligence Software can give you inaccurate answers that are not aligned to the prescribed study material. The University can easily identify the answers obtained from Artificial Intelligence Software as well as answers copied from internet sources, and the markers will award a zero mark for such answers. Furthermore, students who engage in academic dishonesty may be referred to a disciplinary hearing. 2 ASSIGNMENT 02 Question: 1 Skylab (Pty) Ltd wishes to have a database designed and installed that will receive, process and store information generated by the work done in its laboratory. It wants to appoint a service provider to design and install this system, and also wants the service provider to maintain the database for the next ten years. Internet World (Pty) Ltd is keen to conclude this contract with Skylab (Pty) Ltd as it is a very profitable contract. It appoints Lerato, one of its directors, to enter into negotiations with Skylab (Pty) Ltd for this purpose. After a few weeks of negotiations, Skylab (Pty) Ltd decides that it does not want to conclude the contract with Internet (Pty) Ltd but wishes to enter into the contract with Lerato in her personal capacity. It offers the contract to Lerato personally. Lerato subsequently resigns as a director of Internet World (Pty) Ltd and informs the 4 company that she wishes to take early retirement and travel the world before she gets too old. Internet World (Pty) Ltd appoints Themba to continue the negotiations with Skylab (Pty) Ltd in place of Lerato. When Themba tries to arrange a meeting with Skylab (Pty) Ltd for this purpose, he is informed by Skylab (Pty) Ltd that it had already concluded a contract with Lerato in her personal capacity for the design and installation of the database, and that Lerato had recently commenced working on the database. Internet World (Pty) Ltd wishes to pursue legal action against Lerato for a breach of her fiduciary duties. Lerato argues that she signed the contract with Skylab (Pty) Ltd only after she had resigned from Internet World (Pty) Ltd and that she had therefore not breached her fiduciary duties to Internet World (Pty) Ltd. With reference to the Companies Act 71 of 2008, relevant case law and the facts provided, discuss whether Lerato has breached any specific fiduciary duties she owed to Internet World (Pty) Ltd. Also consider the validity of Lerato’s argument that she did not breach her fiduciary duties to Internet World (Pty) Ltd since she signed the contract with Skylab (Pty) Ltd only after she had resigned from Internet World (Pty) Ltd. (15) Question: 2 Boaz is a business rescue practitioner of a company that is under business rescue. Due to complications in the company, Boaz applied to court to extend the duration of the business rescue proceedings for two additional months. The additional two months have lapsed and the business rescue proceedings have not ended. Boaz wants the business rescue proceedings to continue as the company is slowly recovering from its financial distress. With reference to the relevant provisions of the Companies Act 71 of 2008, advise Boaz on what he should do under these circumstances. (5) TOTAL FOR ASSIGNMENT 02: [20]