CLA2601
Assignment 1 Semester 1 2025
Unique Number: 770912
Due Date: 7 April 2025
QUESTION 1 (2 ANSWERS PROVIDED)
For a valid partnership to exist in South African law, certain essentialia must be present:
(a) at least two persons agree to act in common;
(b) each contributes something—whether money, skill, or labour;
(c) the enterprise is carried on for their joint benefit; (d) the object is the making of
profit; and
(d) the intention is that each partner shares in the net profit and bears a corresponding
share in any loss.
In Joubert v Tarry & Co 1915 TPD 277, the court stressed that sharing in the profits (and
losses) of the business is central to the notion of 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 (2 ANSWERS PROVIDED)
For a valid partnership to exist in South African law, certain essentialia must be
present:
(a) at least two persons agree to act in common;
(b) each contributes something—whether money, skill, or labour;
(c) the enterprise is carried on for their joint benefit; (d) the object is the making
of profit; and
(d) the intention is that each partner shares in the net profit and bears a
corresponding share in any loss.
In Joubert v Tarry & Co 1915 TPD 277, the court stressed that sharing in the profits
(and losses) of the business is central to the notion of partnership.
In the present scenario, Zane, Bongi, Muthu, and Sophy intend to form a partnership
to buy and sell mobile phones. Bongi and Sophy contribute capital, Zane contributes
repair services, and Muthu is responsible for administration, marketing, and day-to-
day sales. Although they do carry on a business aimed at making profit for their
common enterprise, a potential problem arises regarding Muthu’s status. The
agreement explicitly states that profits are to be divided only among Bongi, Sophy,
and Zane, whereas Muthu receives a monthly salary rather than a share of net
profits.
This arrangement suggests that Muthu may not be a partner at all, but rather an
employee. In Joubert v Tarry & Co, the court indicated that a partner must at least
participate in the business’s net profit; the fact that Muthu does not share in those
profits is inconsistent with partnership. While Muthu’s services constitute a
contribution, the absence of profit participation undermines the joint-benefit
requirement.
Therefore, under the general principles set out in Joubert v Tarry & Co, only Bongi,
Sophy, and Zane effectively meet the requirements of partnership. Muthu’s fixed
remuneration places him outside the circle of co-partners, making the partnership
valid only among the other three.
OR
Assignment 1 Semester 1 2025
Unique Number: 770912
Due Date: 7 April 2025
QUESTION 1 (2 ANSWERS PROVIDED)
For a valid partnership to exist in South African law, certain essentialia must be present:
(a) at least two persons agree to act in common;
(b) each contributes something—whether money, skill, or labour;
(c) the enterprise is carried on for their joint benefit; (d) the object is the making of
profit; and
(d) the intention is that each partner shares in the net profit and bears a corresponding
share in any loss.
In Joubert v Tarry & Co 1915 TPD 277, the court stressed that sharing in the profits (and
losses) of the business is central to the notion of 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 (2 ANSWERS PROVIDED)
For a valid partnership to exist in South African law, certain essentialia must be
present:
(a) at least two persons agree to act in common;
(b) each contributes something—whether money, skill, or labour;
(c) the enterprise is carried on for their joint benefit; (d) the object is the making
of profit; and
(d) the intention is that each partner shares in the net profit and bears a
corresponding share in any loss.
In Joubert v Tarry & Co 1915 TPD 277, the court stressed that sharing in the profits
(and losses) of the business is central to the notion of partnership.
In the present scenario, Zane, Bongi, Muthu, and Sophy intend to form a partnership
to buy and sell mobile phones. Bongi and Sophy contribute capital, Zane contributes
repair services, and Muthu is responsible for administration, marketing, and day-to-
day sales. Although they do carry on a business aimed at making profit for their
common enterprise, a potential problem arises regarding Muthu’s status. The
agreement explicitly states that profits are to be divided only among Bongi, Sophy,
and Zane, whereas Muthu receives a monthly salary rather than a share of net
profits.
This arrangement suggests that Muthu may not be a partner at all, but rather an
employee. In Joubert v Tarry & Co, the court indicated that a partner must at least
participate in the business’s net profit; the fact that Muthu does not share in those
profits is inconsistent with partnership. While Muthu’s services constitute a
contribution, the absence of profit participation undermines the joint-benefit
requirement.
Therefore, under the general principles set out in Joubert v Tarry & Co, only Bongi,
Sophy, and Zane effectively meet the requirements of partnership. Muthu’s fixed
remuneration places him outside the circle of co-partners, making the partnership
valid only among the other three.
OR
