MRL2601
Assignment 1 Semester 2 2025
2 2025
Unique Number:
Due date: August 2025
QUESTION 1
A partnership is defined as a legal relationship arising from an agreement between two or
more persons who undertake to contribute to a joint enterprise with the intention of making
and sharing profits for their mutual benefit. This is governed by the essentialia of
partnership, as affirmed in Bester v Van Niekerk 1960 (2) SA 779 (A), which requires: (1) a
contribution by each partner; (2) a common goal of making profit; and (3) carrying on
business for mutual benefit.
In this case:
Sello’s Contribution: Sello offers R25 000 on the condition that he will be
reimbursed if the partnership fails. This does not meet the requirement of a true
partnership contribution, as his money is not exposed to the business risk. If he is
guaranteed repayment regardless of success, he acts more like a creditor than a
partner (Nagel, 2011:44). His participation is therefore not valid for establishing a
partnership.
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +27 81 278 3372
QUESTION 1
A partnership is defined as a legal relationship arising from an agreement between
two or more persons who undertake to contribute to a joint enterprise with the
intention of making and sharing profits for their mutual benefit. This is governed by
the essentialia of partnership, as affirmed in Bester v Van Niekerk 1960 (2) SA 779
(A), which requires: (1) a contribution by each partner; (2) a common goal of making
profit; and (3) carrying on business for mutual benefit.
In this case:
Sello’s Contribution: Sello offers R25 000 on the condition that he will be
reimbursed if the partnership fails. This does not meet the requirement of a
true partnership contribution, as his money is not exposed to the business
risk. If he is guaranteed repayment regardless of success, he acts more like a
creditor than a partner (Nagel, 2011:44). His participation is therefore not valid
for establishing a partnership.
Ndumi’s Contribution: Ndumi contributes his expertise as an electrician.
This qualifies as a valid contribution because labour and skills are recognised
forms of contribution to a partnership, provided they are offered for the joint
benefit and exposed to business risk (Joubert v Tarry and Co 1915 TPD 277).
Freddy’s Contribution: Freddy offers the use of his Hilux pickup truck. This
is also a valid contribution if the truck is used in the business and not simply
loaned on condition of return without risk. It must be available for the business
to use freely as an asset.
The contributions of Ndumi and Freddy are valid for forming a partnership. However,
Sello’s conditional contribution disqualifies him from being a true partner. If he
wishes to be a partner, he must be willing to place his money at risk, without the
guarantee of repayment if the partnership fails.
QUESTION 2
2.1.
Assignment 1 Semester 2 2025
2 2025
Unique Number:
Due date: August 2025
QUESTION 1
A partnership is defined as a legal relationship arising from an agreement between two or
more persons who undertake to contribute to a joint enterprise with the intention of making
and sharing profits for their mutual benefit. This is governed by the essentialia of
partnership, as affirmed in Bester v Van Niekerk 1960 (2) SA 779 (A), which requires: (1) a
contribution by each partner; (2) a common goal of making profit; and (3) carrying on
business for mutual benefit.
In this case:
Sello’s Contribution: Sello offers R25 000 on the condition that he will be
reimbursed if the partnership fails. This does not meet the requirement of a true
partnership contribution, as his money is not exposed to the business risk. If he is
guaranteed repayment regardless of success, he acts more like a creditor than a
partner (Nagel, 2011:44). His participation is therefore not valid for establishing a
partnership.
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +27 81 278 3372
QUESTION 1
A partnership is defined as a legal relationship arising from an agreement between
two or more persons who undertake to contribute to a joint enterprise with the
intention of making and sharing profits for their mutual benefit. This is governed by
the essentialia of partnership, as affirmed in Bester v Van Niekerk 1960 (2) SA 779
(A), which requires: (1) a contribution by each partner; (2) a common goal of making
profit; and (3) carrying on business for mutual benefit.
In this case:
Sello’s Contribution: Sello offers R25 000 on the condition that he will be
reimbursed if the partnership fails. This does not meet the requirement of a
true partnership contribution, as his money is not exposed to the business
risk. If he is guaranteed repayment regardless of success, he acts more like a
creditor than a partner (Nagel, 2011:44). His participation is therefore not valid
for establishing a partnership.
Ndumi’s Contribution: Ndumi contributes his expertise as an electrician.
This qualifies as a valid contribution because labour and skills are recognised
forms of contribution to a partnership, provided they are offered for the joint
benefit and exposed to business risk (Joubert v Tarry and Co 1915 TPD 277).
Freddy’s Contribution: Freddy offers the use of his Hilux pickup truck. This
is also a valid contribution if the truck is used in the business and not simply
loaned on condition of return without risk. It must be available for the business
to use freely as an asset.
The contributions of Ndumi and Freddy are valid for forming a partnership. However,
Sello’s conditional contribution disqualifies him from being a true partner. If he
wishes to be a partner, he must be willing to place his money at risk, without the
guarantee of repayment if the partnership fails.
QUESTION 2
2.1.
