CLA2601
ASSIGNMENT 2 2026
DUE: 16 APRIL 2026
SEMESTER 1 2026
, CLA2601 ASSIGNMENT 2 2026
DUE 16 APRIL 2026
Question 1
Lesego and Phumudzo, as trustees of the Build Your Own Home Trust (a
business trust involved in construction), have acted lawfully by purchasing a
back actor, even though the trust deed does not explicitly authorise it.
A trustee’s primary duty is to preserve trust assets and not expose them to undue risk
However, an exception exists for a business trust. A business trust empowers trustees
to carry on a trade or business, which implicitly grants them the authority to expose the
trust to the risks inherent in that specific type of business
(CLA2601 Study Guide, 2024, p. 199).
ASSIGNMENT 2 2026
DUE: 16 APRIL 2026
SEMESTER 1 2026
, CLA2601 ASSIGNMENT 2 2026
DUE 16 APRIL 2026
Question 1
Lesego and Phumudzo, as trustees of the Build Your Own Home Trust (a
business trust involved in construction), have acted lawfully by purchasing a
back actor, even though the trust deed does not explicitly authorise it.
A trustee’s primary duty is to preserve trust assets and not expose them to undue risk
However, an exception exists for a business trust. A business trust empowers trustees
to carry on a trade or business, which implicitly grants them the authority to expose the
trust to the risks inherent in that specific type of business
(CLA2601 Study Guide, 2024, p. 199).
