MRL2601 | ENTREPRENEURIAL LAW | ASSIGNMENT 1
SEMESTER 1 2026/2027
ANSWER
COMPLETE QUESTIONS AND ANSWERS | 100% CORRECT
SOLUTIONS & EXPLANATIONS
TABLE OF CONTENTS
ANSWERANSWER-
1. ASSIGNMENT COVER SHEET AND INSTRUCTIONS................. PAGE 1
2. QUESTION 1: PARTNERSHIP VS COMPANY...................... PAGE 2
3. QUESTION 2.1: LEGAL NATURE OF A TRUST.................. PAGE 4
4. QUESTION 2.2: LEGAL POSITION OF A FOUNDER IN A TRUST.... PAGE 5
5. COMPREHENSIVE REFERENCE LIST............................ PAGE 6
ANSWER
ASSIGNMENT COVER SHEET AND INSTRUCTIONS
ANSWER
Module Code: MRL2601
Module Name: Entrepreneurial Law
Assignment: 1 (Semester 1)
Total Marks: 20
Instructions:
• This document contains complete, verified solutions for MRL2601 Assignment 1.
• Answers are comprehensive and include legal citations and explanations.
• Use this document as a study aid and reference guide.
• Ensure your own submission is in your own words to avoid plagiarism concerns [citation:2].
IMPORTANT DISCLAIMER:
This document is intended for study assistance, comparison, and reference purposes only.
Students are advised to use this material as a guide and to ensure their final submissions
are original work. The author accepts no responsibility for academic dishonesty or
misuse of this content [citation:1][citation:2].
ANSWER
QUESTION 1: PARTNERSHIP VERSUS COMPANY
ANSWER
Question 1.1
, ANSWER
Ben is a young aviation specialist who is passionate about aircraft and aviation law. In his
professional pursuits, he has decided to establish a company or form a partnership with a
colleague that would enhance the global aspect of aviation within the area of corporate law. Ben
decides to approach you for advice about a partnership and a company.
Advise Ben on the difference between a partnership and a company. (10 marks)
COMPLETE ANSWER:
ANSWER
Ben requires advice on the fundamental differences between a partnership and a company as
business structures for his aviation law practice. The key distinctions are outlined below:
1. LEGAL NATURE AND PERSONALITY
• Company: A company is a separate legal person that exists independently from the people
who own or manage it. This means the company can own property, enter into contracts, sue,
and be sued in its own name [citation:2].
• Partnership: A partnership does not have a separate legal personality. The partners and the
partnership are regarded as the same in law. As a result, partners are personally involved in the
rights and obligations of the partnership [citation:2]. A partnership is a contractual relationship
between two or more persons who agree to carry on a lawful business together with the
intention of making and sharing a profit [citation:1].
2. FORMATION REQUIREMENTS
• Company: A company is created through a formal process of incorporation in terms of the
Companies Act. This involves registration with the Companies and Intellectual Property
Commission (CIPC) and compliance with statutory requirements [citation:2].
• Partnership: A partnership is formed through an agreement between two or more persons.
No formal registration is required, although a written partnership agreement is strongly
recommended to regulate the relationship between partners [citation:2].
3. LIABILITY OF OWNERS
• Company: Shareholders in a company generally enjoy limited liability. They are not
personally liable for the debts and obligations of the company beyond their capital contribution.
• Partnership: Partners are personally and jointly liable for the debts and obligations of the
partnership [citation:1]. If the partnership is unable to meet its obligations, creditors may claim
against the personal assets of the partners [citation:1].
4. CONTINUITY AND PERPETUAL SUCCESSION
• Company: A company has perpetual succession. It continues to exist regardless of changes
in ownership, death, or insolvency of shareholders.
SEMESTER 1 2026/2027
ANSWER
COMPLETE QUESTIONS AND ANSWERS | 100% CORRECT
SOLUTIONS & EXPLANATIONS
TABLE OF CONTENTS
ANSWERANSWER-
1. ASSIGNMENT COVER SHEET AND INSTRUCTIONS................. PAGE 1
2. QUESTION 1: PARTNERSHIP VS COMPANY...................... PAGE 2
3. QUESTION 2.1: LEGAL NATURE OF A TRUST.................. PAGE 4
4. QUESTION 2.2: LEGAL POSITION OF A FOUNDER IN A TRUST.... PAGE 5
5. COMPREHENSIVE REFERENCE LIST............................ PAGE 6
ANSWER
ASSIGNMENT COVER SHEET AND INSTRUCTIONS
ANSWER
Module Code: MRL2601
Module Name: Entrepreneurial Law
Assignment: 1 (Semester 1)
Total Marks: 20
Instructions:
• This document contains complete, verified solutions for MRL2601 Assignment 1.
• Answers are comprehensive and include legal citations and explanations.
• Use this document as a study aid and reference guide.
• Ensure your own submission is in your own words to avoid plagiarism concerns [citation:2].
IMPORTANT DISCLAIMER:
This document is intended for study assistance, comparison, and reference purposes only.
Students are advised to use this material as a guide and to ensure their final submissions
are original work. The author accepts no responsibility for academic dishonesty or
misuse of this content [citation:1][citation:2].
ANSWER
QUESTION 1: PARTNERSHIP VERSUS COMPANY
ANSWER
Question 1.1
, ANSWER
Ben is a young aviation specialist who is passionate about aircraft and aviation law. In his
professional pursuits, he has decided to establish a company or form a partnership with a
colleague that would enhance the global aspect of aviation within the area of corporate law. Ben
decides to approach you for advice about a partnership and a company.
Advise Ben on the difference between a partnership and a company. (10 marks)
COMPLETE ANSWER:
ANSWER
Ben requires advice on the fundamental differences between a partnership and a company as
business structures for his aviation law practice. The key distinctions are outlined below:
1. LEGAL NATURE AND PERSONALITY
• Company: A company is a separate legal person that exists independently from the people
who own or manage it. This means the company can own property, enter into contracts, sue,
and be sued in its own name [citation:2].
• Partnership: A partnership does not have a separate legal personality. The partners and the
partnership are regarded as the same in law. As a result, partners are personally involved in the
rights and obligations of the partnership [citation:2]. A partnership is a contractual relationship
between two or more persons who agree to carry on a lawful business together with the
intention of making and sharing a profit [citation:1].
2. FORMATION REQUIREMENTS
• Company: A company is created through a formal process of incorporation in terms of the
Companies Act. This involves registration with the Companies and Intellectual Property
Commission (CIPC) and compliance with statutory requirements [citation:2].
• Partnership: A partnership is formed through an agreement between two or more persons.
No formal registration is required, although a written partnership agreement is strongly
recommended to regulate the relationship between partners [citation:2].
3. LIABILITY OF OWNERS
• Company: Shareholders in a company generally enjoy limited liability. They are not
personally liable for the debts and obligations of the company beyond their capital contribution.
• Partnership: Partners are personally and jointly liable for the debts and obligations of the
partnership [citation:1]. If the partnership is unable to meet its obligations, creditors may claim
against the personal assets of the partners [citation:1].
4. CONTINUITY AND PERPETUAL SUCCESSION
• Company: A company has perpetual succession. It continues to exist regardless of changes
in ownership, death, or insolvency of shareholders.
