MRL2601
Assignment 1
Semester 2 | Due 13
August 2025
NO PLAGIARISM
[Pick the date]
[Type the company name]
, Exam (elaborations)
MRL2601 Assignment 1 Semester 2 | Due 13 August
2025
Course
• Entrepreneurial Law (MRL2601)
• Institution
• University Of South Africa (Unisa)
• Book
• New Entrepreneurial Law
Question 1 Themba, Ndumi and Freddy want to start a partnership with the aim of
selling Solar batteries. Sello intends to contribute R25 000.00 on condition that should
the partnership fail, Ndumi and Freddy will reimburse him. Ndumi intends to contribute
his expertise as an electrician. Freddy intends to contribute the use of his Hilux pickup
truck. They come to you for advice on whether a partnership agreement will be valid
based on what each of them wants to contribute. Advise them fully. (In your advice,
define a partnership, deal with each contribution and conclude.) (10)
Themba, Ndumi, and Freddy are seeking to form a partnership to sell solar batteries. Their
proposed contributions and conditions raise important questions about the validity of their
partnership agreement in terms of South African law.
Definition of a Partnership
In South African law, a partnership is a contract between two or more persons, agreed to carry on
a lawful business in common with the object of making a profit and for the joint benefit of the
partners. The essential elements (also known as essentialia) of a partnership, as established in
case law like Joubert v Tally and Company 1915 EDL 335, are:
1. Each partner must make a contribution: Each partner must contribute something of
commercial or economic value to the partnership. This can be capital, property, services,
knowledge, or skill.
2. The business must be carried on for the joint benefit of the partners: The partnership
activities must be conducted for the common interest and advantage of all partners, and
they must share in the profits.
3. The objective must be to make a profit: The primary aim of the partnership must be to
generate a net profit, which will then be divided among the partners. It's the intention to
make a profit, not necessarily that a profit is actually made, that is key.
4. The contract between the parties must be a valid, lawful agreement: The underlying
agreement to form the partnership must meet all the general requirements for a valid
contract (e.g., offer and acceptance, capacity, legality, etc.).
Assignment 1
Semester 2 | Due 13
August 2025
NO PLAGIARISM
[Pick the date]
[Type the company name]
, Exam (elaborations)
MRL2601 Assignment 1 Semester 2 | Due 13 August
2025
Course
• Entrepreneurial Law (MRL2601)
• Institution
• University Of South Africa (Unisa)
• Book
• New Entrepreneurial Law
Question 1 Themba, Ndumi and Freddy want to start a partnership with the aim of
selling Solar batteries. Sello intends to contribute R25 000.00 on condition that should
the partnership fail, Ndumi and Freddy will reimburse him. Ndumi intends to contribute
his expertise as an electrician. Freddy intends to contribute the use of his Hilux pickup
truck. They come to you for advice on whether a partnership agreement will be valid
based on what each of them wants to contribute. Advise them fully. (In your advice,
define a partnership, deal with each contribution and conclude.) (10)
Themba, Ndumi, and Freddy are seeking to form a partnership to sell solar batteries. Their
proposed contributions and conditions raise important questions about the validity of their
partnership agreement in terms of South African law.
Definition of a Partnership
In South African law, a partnership is a contract between two or more persons, agreed to carry on
a lawful business in common with the object of making a profit and for the joint benefit of the
partners. The essential elements (also known as essentialia) of a partnership, as established in
case law like Joubert v Tally and Company 1915 EDL 335, are:
1. Each partner must make a contribution: Each partner must contribute something of
commercial or economic value to the partnership. This can be capital, property, services,
knowledge, or skill.
2. The business must be carried on for the joint benefit of the partners: The partnership
activities must be conducted for the common interest and advantage of all partners, and
they must share in the profits.
3. The objective must be to make a profit: The primary aim of the partnership must be to
generate a net profit, which will then be divided among the partners. It's the intention to
make a profit, not necessarily that a profit is actually made, that is key.
4. The contract between the parties must be a valid, lawful agreement: The underlying
agreement to form the partnership must meet all the general requirements for a valid
contract (e.g., offer and acceptance, capacity, legality, etc.).
