MRL2601/101/3/2021

Tutorial Letter 101/3/2021

ENTREPRENEURIAL LAW
MRL2601

Semesters 1 and 2

Department of Mercantile Law

This tutorial letter contains important information

about your module.

BARCODE
 CONTENTS
Page

1 INTRODUCTION TO THE MODULE ............................................................................................ 4

1.1 Transformative constitutionalism ................................................................................................... 5
2 PURPOSE AND OUTCOMES ...................................................................................................... 6
2.1 Purpose ........................................................................................................................................ 6
2.2 Outcomes ..................................................................................................................................... 6
3 LECTURERS AND CONTACT DETAILS ...................................................................................... 6
3.1 Lecturers....................................................................................................................................... 6
3.2 Department ................................................................................................................................... 7
3.3 University ...................................................................................................................................... 7
4 RESOURCES ............................................................................................................................... 7
4.1 Prescribed book(s) ........................................................................................................................ 7
4.2 Recommended book(s) ................................................................................................................. 8
4.3 Electronic reserves (e-reserves) ................................................................................................... 8
5 STUDENT SUPPORT SERVICES ................................................................................................ 9
5.1 Study groups ................................................................................................................................. 9
6 STUDY PLAN ............................................................................................................................. 10
7 PRACTICAL WORK.................................................................................................................... 11
8 ASSESSMENT ........................................................................................................................... 11
8.1 Assessment criteria..................................................................................................................... 11
8.2 Assessment plan ........................................................................................................................ 12
8.3 Assignment numbers .................................................................................................................. 12
8.3.1 General assignment numbers ..................................................................................................... 12
8.3.2 Unique assignment numbers ...................................................................................................... 12
8.4 Assignment due dates ................................................................................................................ 12
8.5 Submission of assignments ........................................................................................................ 13
8.6 The assignments ........................................................................................................................ 15
8.6.1 General approach to answering problem-type questions:............................................................ 18
8.6.2 Comments on assignments ........................................................................................................ 19
8.7 Other assessment methods ........................................................................................................ 19
8.8 The examination ......................................................................................................................... 20
8.8.2 Admission to the examination ..................................................................................................... 20
9 FREQUENTLY ASKED QUESTIONS ......................................................................................... 20

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10 IN CLOSING ............................................................................................................................... 20
11 ADDENDUM ............................................................................................................................... 21
ADDENDUM A: COMPULSORY ASSIGNMENTS ................................................................................. 21
ADDENDUM B: TIME SCHEDULE FOR STUDYING MRL2601…………………………………………….28

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Dear Student

1 INTRODUCTION TO THE MODULE

It is a pleasure to welcome you to Entrepreneurial Law (MRL2601). We hope that you will find it
both interesting and rewarding. We shall do our best to make your study of this module
successful. You will be well on your way to success if you start studying early in the semester
and resolve to do the assignments properly.
This tutorial letter contains important information about this module. We urge you to read it
carefully, and to keep it at hand when working through the study material, completing the
assignments, preparing for the examination, and when asking your lecturers questions.
In this tutorial letter, you will find the two assignments for both of the semesters, and
assessment criteria as well as instructions on the preparation and submission of the
assignments. This tutorial letter also provides all the information you need with regard to the
prescribed study material. In addition, the tutorial letter contains certain general and
administrative information regarding the module. Please study this information and try to get
hold of the prescribed study material as soon as possible. In addition to this tutorial letter, you
will also receive other tutorial letters in the course of the semester. These tutorial letters are not
necessarily available upon registration. They will be sent to you as soon as they are available or
necessary. You can also access the study material on myUnisa.
We encourage you to register on myUnisa – this is an aid that makes it possible to
communicate with other students and your lecturers, to submit assignments online and to
access library and study material. You can access myUnisa at http://my.unisa.ac.za. For further
information regarding myUnisa and other administrative matters please consult the publication
myStudies@Unisa. Please read Tutorial Letter 301 with this tutorial letter as it provides
information of general pertinence to distance students.
Addendum B of this tutorial letter contains a time frame to help you plan your study time for this
module. Please remember that this is a semester module of twelve (12) credits for second-year
students. This means that you need to spend ten (10) hours per week on this module. A
semester is twelve (12) weeks long, and you therefore have 120 hours to study for this module.
The last three to four weeks of the semester are for revision purposes.
It is extremely important that you read all tutorial letters that you receive in the course of the
semester immediately and thoroughly. They always contain important, and sometimes urgent
information. Your study material for MRL2601 consists of a study guide and tutorial letters that
you will receive from Unisa, as well as a prescribed textbook that you must purchase yourself.
Please be very careful when using any other study material, for instance notes with summaries,
or exam papers that are not provided by Unisa directly. They are not compiled with our co-
operation. Therefore, we cannot guarantee the accuracy or completeness of the information
contained therein.

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1.1 Transformative constitutionalism

As part of this tutorial letter, we wish to inform you that Unisa has implemented a transformation
charter based on five pillars and eight dimensions. In response to this charter, we have also
placed curriculum transformation high on the agenda. For your information, curriculum
transformation includes the following pillars: student-centred scholarship, the pedagogical
renewal of teaching and assessment practices, the scholarship of teaching and learning, and
the infusion of African epistemologies and philosophies. These pillars and their principles will be
integrated at both the programme and module levels, as a phased-in approach. You will notice
the implementation thereof in your modules, and we encourage you to embrace these changes
during your studies.

The values and beliefs that govern the principles of the law of contract and commerce are
based on constitutional values and principles as depicted in the constitutional right to property
and freedom of trade just to name a few. These values and principles often incorporate African
values including the concept of ubuntu. The Constitution of South Africa, 1996 encapsulates
African values, philosophies and principles imbued in the teaching and learning. Therefore,
formative and summative assessment will include African philosophies as discussed in tutorial
material.

1.2 First-Year Experience Programme @ Unisa

Unisa’s first-year experience (FYE) initiative is designed to provide extended support to

students entering Unisa and Open Distance e-Learning (ODeL) environment for the first time by
increasing communication between the institution and its students, and by also providing
important information during crucial points in the students journey. FYE is a collective effort to
help first-year students to adapt to ODeL environment. Through the FYE students will be
provided with on-time and helpful information about the services that the institution offers and
how they can access the services.

FYE initiatives

• FYE emails – are a tool to help first-year students to stay focused, and motivated.
• FYE broadcasts – various topics related to first-year studies are broadcasted with
academic and support staff from different colleges and departments.
• FYE mailbox – to help assist students with queries related to their first year of study.
• FYE website – to help bridge the gap between students and the institution.
• FYE MOOC – to help prepare, orientate and familiarise students with Unisa environment.

Visit our website:

www.unisa.ac.za/FYE
Participate in the FYE MOOC:
mooc.unisa.ac.za
Contact us:
fye@unisa.ac.za

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2 PURPOSE AND OUTCOMES
2.1 Purpose
This module is aimed at students in the study of law who are for the first time introduced to the
different forms of South African business enterprises. This module will be useful if you wish to
acquire general background knowledge of the main characteristics, and the basic operations in
partnerships, companies, close corporations and business trusts. Furthermore, it introduces the
regulatory framework around which these business forms are set with specific emphasis on the
Companies Act 71 of 2008, which came into operation on 1 May 2011. In addition, it will expose
you to case law and to the practical application of the law in these South African enterprises.
2.2 Outcomes
If you pass this module you should be able to advise others wishing to start their own business
which form of enterprise would be most suitable for the specific business, indicating some of the
pertinent advantages and disadvantages associated with such forms of enterprise. Furthermore,
the module is aimed at providing you with the knowledge, skills and attitudes to analyse and
solve well-defined practical problems relating to the South African law on partnerships,
companies, close corporations and business trusts.

3 LECTURERS AND CONTACT DETAILS

3.1 Lecturers
The names of your lecturers and their consultation hours will be posted on myUnisa
under “Announcements” and in a Tutorial Letter 102. In the meantime, contact the
department who will direct you to the relevant lecturers.
All queries that are not of a purely administrative nature but are about the content of this module
should be directed to us. The details of all the lecturers involved in this module will be provided
to you in Tutorial Letter 102.

You can also contact us by sending a letter to:

The Module leader (MRL2601)
Mercantile Law Department
P.O. Box 392
UNISA
0003
PLEASE NOTE: Letters to lecturers may not be enclosed with or inserted into
assignments.

You are welcome to visit us to discuss any queries about or problems with the contents of this
module. However, please make an appointment beforehand, otherwise you run the risk of the
lecturer not being available to see you. Our offices are situated in the Cas van Vuuren
Building, Main Campus, Preller Street, Muckleneuk Ridge, Pretoria.

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3.2 Department

Please have your tutorial material with you when you contact us by telephone. The general
contact and fax numbers for the Department of Mercantile Law are as follows:
Telephone number: +27 12 429 6767
Fax number: +27 12 429 3343
E-mail: mofokpg@unisa.ac.za

3.3 University

• Unisa website: http://www.unisa.ac.za & http://mobi.unisa.ac.za

All study related information is now available on the new Unisa corporate website in
both web and mobi formats.
• myUnisa: http://my.unisa.ac.za/portal & http://my.unisa.ac.za/portal/ pda You can
access your own information via the myUnisa website or mobi site.
• Email: info@unisa.ac.za
You may send an email to info@unisa.ac.za for information on how to contact Unisa
via e-mail.
• SMS (32695 - only for students in South Africa)
You may send an SMS to 32695 for more information on how to contact Unisa via
SMS. You will receive an automatic response SMS with various SMS options. The
cost per SMS is R1,00.
• Fax (012 429 4150) Enquiries can be faxed to 012 429 4150 where after it will be
distributed to and processed by the relevant department.

If you need to contact the University about matters not related to the content of this module,
please consult the publication Study@Unisa that you received with your study material. This
booklet contains information on how to contact the University (e.g. to whom you can write for
different queries, important telephone and fax numbers, addresses and details of the times
certain facilities are open).

Always have your student number at hand when you contact the University.

4 RESOURCES
4.1 Prescribed book(s)
The prescribed textbook for MRL2601 is Piet Delport New Entrepreneurial Law (2015)
LexisNexis.

You must purchase the prescribed textbook yourself. The prescribed text book can be
acquired at the University’s official book dealers. Should you experience any problems in
purchasing the text book from the dealers, you can contact the Prescribed Book Division at Tel
012 429 4152 or e-mail vospresc@unisa.ac.za.

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PLEASE NOTE! In the study guide you are referred to cases that you are required to
know only in as far as they are discussed in the study guide. To keep the module as up
to date and relevant as possible the references to no more than five (5) of the most
recent cases in the field will be provided in the Tutorial Letter 102. These cases you are
required to access, read and summarise. Copies of these prescribed cases will be made
available under Additional Resources on myUnisa for students who are unable to access
them by some other means.

You are required to study certain sections of the Companies Act 71 of 2008, the Companies
Amendment Act, 2011, the Companies Regulations, 2011 and the Close Corporations Act 69 of
1984. You can download the latest version of the Acts from www.gov.za. Choose the
“Documents” icon and then “Acts”. You can also access these sources under Additional
Resources on myUnisa.

4.2 Recommended book(s)

There are no recommended books for this module.

4.3 Electronic reserves (e-reserves)

There are no e-reserves for this module.

4.4 Library services and resources information

The Unisa Library offers a range of information services and resources:
• For detailed Library information, go to https://unisa.ac.za/library
• For research support and services (e.g. personal librarians and literature search
services), go to https://www.unisa.ac.za/sites/corporate/default/Library/Library-
services/Research-support
• The Library has created numerous Library guides: https://libguides.unisa.ac.za
Recommended guides:

• Request and download recommended material:

https://libguides.unisa.ac.za/request
• Finding and using Library resources and tools:
https://libguides.unisa.ac.za/research-support
• Frequently asked questions about the Library:
https://libguides.unisa.ac.za/ask
• Services to students living with disabilities:
https://libguides.unisa.ac.za/disability
• Assistance with technical problems accessing the Unisa Library or resources:
https://libguides.unisa.ac.za/techsupport

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You may also send an e-mail to Lib-help@unisa.ac.za (please add your student number in the
subject line).

5 STUDENT SUPPORT SERVICES

The Study@Unisa brochure is available on myUnisa: www.unisa.ac.za/brochures/studies
This brochure contains tips and information you need to succeed at distance learning and,
specifically, at Unisa.

5.1 Study groups

It is advisable to have contact with fellow students. One way of doing this is to form study
groups. The addresses of students in your area may be obtained from the following department:
Directorate: Student Administration and Registration
PO Box 392
Unisa
0003
You may also communicate with your fellow students on the Discussion Forums platform on
myUnisa.
5.2 myUnisa
If you have access to a computer that is linked to the internet, you can quickly access resources
and information at the University. The myUnisa learning-system is Unisa's online campus that
will help you to communicate with your lecturers, with other students and with the administrative
departments of Unisa – all through the computer and the internet.
To go to the myUnisa web site, start at the main Unisa web site, http://www.unisa.ac.za, and
then click on the “Login to myUnisa” link on the right-hand side of the screen. This should take
you to the myUnisa web site. You can also go there directly by typing in http://my.unisa.ac.za.
You are encouraged to make full use of this forum as it gives you an idea regarding the type of
questions that you are going to encounter during the examination session.
From time to time your lecturers will post questions on the online discussion forums on
myUnisa. The questions will focus on the topics dealt with in this module. Please post
your suggested answer to the question on the discussion forum. You will be able to
access these questions on the MRL2601 site on myUnisa. On the left-hand side of the
MRL2601 page you will see a tab titled “Discussion Forums”. Click on this tab and it will take
you to the online discussion forum questions. We strongly encourage you to participate in the
online discussion forum questions as doing so will assist you with your exam preparation.
Please note that we will, from time to time, publish important announcements on
myUnisa about this module. It is important that you read all the announcements posted
on myUnisa.

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Please consult the publication Study @Unisa for more information on myUnisa.
5.3 Student Retention Unit
We refer you to the Unisa Student Retention Unit website. Important information is distributed
to students on various topics relevant to successfully completing your studies, such as time
management, navigating myUnisa, completing your assignments and exam preparation.
Live broadcasts are hosted on Wednesdays at 12:00 to 13:00 on selected dates throughout the
semester. Here you will have the opportunity to ask the presenters any questions.
Weekly e-mails are sent out by the Student Retention Unit. The inbox is monitored by Student
Success Practitioners who will answer your query within 24 hours.

- First-time entering students can access the FYE website using the following address:
www.unisa.ac.za/FYE
- First-time entering students can access the FYE email at the following email address:
fye@unisa.ac.za

6 STUDY PLAN
Use your Study @Unisa brochure for general time management and planning skills.
We would like to support you in your learning process. However, we can do so only if you take
responsibility for your own learning. You must through the tutorial letters and the learning
material and plan a schedule for your learning process to ensure that you submit all the
assignments and prepare for the examinations in time. We have compiled a schedule that you
may use or adapt to your specific needs (See Addendum B).

We suggest that you follow the following steps in your learning process:

Start with the study units dealing with Partnerships and Trusts. You are not examined on
these sections of the work. Your examination will consist only of the work dealing with
companies and close corporations. Therefore, after you know the content dealing with
Partnerships and Trusts, you can complete Assignment 01. Then you can concentrate on
only the parts of the work on which you will be writing the exam: Close Corporations and
Companies. It will immediately feel like you have less to study!

Step 1: Read the entire section in the study unit that you are studying to provide you with an
overview.

Step 2: Make a short summary (about 2 sentences) of the legislation and the cases referred
to under the topic indicating the importance of each specific case.

Step 3: Attempt to answer the key questions in the beginning of each study unit. If
necessary, reread the prescribed section in the textbook.

Step 4: Make a brain chart of the specific topic or, if you prefer, a written summary. Make
sure that you:

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(1) Set out the relevant legislation (sections in the Companies Act 71 of 2008 or the
Close Corporations Act 69 of 1984); and

(2) Include your summary of the relevant cases.

Please note that you are not required to know all the sections in the Companies Act 71 of 2008
(you may refer to the “Companies Act”) and the Close Corporations Act 69 of 1984 (you may
refer to the “Close Corporations Act”). You also need not know the sections off by heart. Ensure
that you are acquainted with the content of the prescribed sections.

The same applies to case law: You need not memorise the full names and references to cases
and all the facts. However, you must be able to, at least, refer to one of the parties in the case
for instance: “Robinson-case”. Please focus on the importance of the decision. In other words,
you need not memorise and be able to recite all the facts of each case, but only those facts
which impacted on the reasoning of the court in coming to a specific decision. The decision is
the most important part!

Step 5: Prepare for the examination by revising the study units in the study guide and the
prescribed parts in the textbook. By making good summaries during the semester
you wil benefit at this stage!

Study all the tutorial letters that you receive during the year, and work out the answers to the
second assignment for both semesters that is provided in this tutorial letter, and the concept
examination paper provided in Tutorial Letter 102. You will find guidelines to answering the
questions in Tutorial 201. Please also note that previous exam papers are available on
myUnisa. When possible access the discussion forum and consult the discussions of the topics
that you feel uncertain about.

Please make a note of the submission dates for the assignments immediately. Lecturers cannot
give extensions for the submission of the assignments. Failure to submit Assignment 01 will
result in you not getting admission to write the examination.

7 PRACTICAL WORK
There are no practicals for this module.

8 ASSESSMENT
8.1 Assessment criteria
Our formative assessment consists of two written assignments. The marks obtained for the
assignments will – provided you obtain an examination mark of at least 40% – count 20% of
your final mark. You need to obtain a subminimum of at least 40% in the examination before
your year mark will be taken into account.

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8.2 Assessment plan
Both assignment 01 and assignment 02 are compulsory and must be submitted before or
on the due date.

Assignment 01 will contribute 50% and Assignment 02 50% to your year mark. The year mark
will count 20% towards your final mark for the module. The examination will then count 80%
towards your final mark. To pass this module, you must achieve a final mark of at least 50%.

You need to obtain at least 40% in the examination before your year mark will be taken into
account.
8.3 Assignment numbers
8.3.1 General assignment numbers
There are TWO assignments in this module. Both assignments are compulsory. Both
Assignments 01 and 02 contribute to your year mark. Remember that your assignment must
be numbered number 01 or 02.
You should also provide the unique number for Assignment 01 and Assignment 02. State
the module code and assignment number in all enquiries about assignments.
If you do not submit both Assignment 01 and Assignment 02 before the relevant date,
your registration will be cancelled, and you will not be admitted to the examination in
MRL2601.

No extension: No extension for submission of the assignment will be granted under any
circumstances. Assignments received after the due date will be returned unmarked.

8.3.2 Unique assignment numbers

Remember to indicate the course code, assignment number and unique number of every
assignment that you submit.

8.4 Assignment due dates

The closing dates for the submission of the assignments are:

FIRST SEMESTER:

Assignments for the first semester are included in Addendum A.

Assignment number Closing date Unique number

Assignment 01: 15 March 2021 610671

Assignment 02: 13 April 2021 652442

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SECOND SEMESTER:

Assignments for the second semester are included in Addendum A.

Assignment number Closing date Unique number

Assignment 01: 03 September 2021 892502

Assignment 02: 23 September 2021 689066

8.5 Submission of assignments

You may only submit assignments by post or electronically via myUnisa. It is preferable to
submit assignments electronically. Assignments may not be submitted by fax or e-mail. For
detailed information and requirements as far as assignments are concerned, see the brochure
Study @Unisa that you received with your study material.

Assignments not submitted electronically should be addressed to:

The Registrar
PO Box 392
UNISA
0003

Assignments submitted electronically must be converted to PDF format.

Saving your document in PDF format

You can use various computer programmes to save your assignment in PDF format. A variety of
these programmes can be downloaded from myUnisa. Go to the web page entitled “Electronic
resources” at https://my.unisa.ac.za/portal/site/!gateway/page/c919799a-6cdd-4ec2-0019-
839c23c198f8.

Here we explain two further ways of using programmes to save your assignments in PDF
format:

(a) Microsoft Word 2010

In MS Word, click on the “File” tab in the top left corner of your screen. In the drop-down list that
opens, you may see an item named “Save as PDF” as the third item. Use that option if it is
available. Follow the steps to save your document in PDF format.

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If you cannot see “Save as PDF” in the drop-down list, click on the “Save As” item. It is the
second item in the drop-down list. In the field named “Save as type”, click on the bar with the
down arrow. The seventh item in the list that you can then see is “PDF (*.pdf)”. Choose that
option. In the bottom right corner of the next window, click on the button “Save”. Your MS Word
document will then be saved in PDF format.

(b) Google Drive

Another way of saving your work in PDF format is to use Google Drive. It is free via the Chrome
web browser. Download Chrome at https://www.google.com/chrome/browser/. Google Drive is
available at https://drive.google.com/#my-drive. To create your document in Google Drive, click
on the red “Create” button in the top left corner. In the window that opens, choose the
“Document” option.

Google Drive saves your document automatically online. It also has a spellchecker to help you
correct your work.
When you have finished working on your assignment and you wish to save your work in a PDF
document, click on the word “File” in the top left corner. In the list, you will see the option
“Download as…”. Click on that item. The fourth format that you can choose is “PDF document
(.pdf)”. Choose that format to download your work. In your “Downloads” folder on your
computer, you can open the PDF file that contains your assignment.
Please remember to provide exactly the same unique number for the assignment as reflected in
this tutorial letter. In addition, remember to number the first assignment as Assignment 01 and
the second assignment as Assignment 02.

To submit an assignment electronically via myUnisa:

• Go to myUnisa.

• Log in with your student number and password.

• Select the module.

• Click on assignments in the left-hand menu.

• Click on the assignment number you want to submit.

• Follow the instructions on the screen.

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8.6 The assignments

There are TWO assignments in this module. Assignment 01 is a multiple-choice assignment
and assignment 02 is a written assignment. Assignment 01 is a compulsory assignment.
Assignment 02 is also compulsory since both Assignment 01 and 02 contribute to your year
mark. Assignment 01 must be submitted to qualify for admission to the examination.

You must provide the unique number for Assignments 01 and 02. State the module code
(MRL2601) and assignment number (Assignment 01 or 02) in all enquiries related to the
assignments.

Students who use word processors should consult the brochure myStudies@Unisa about the
format and paper to be used for assignments. It is wise to make a copy of the assignment
before submitting it, in case it gets lost in the post. Please also ensure that you keep proof of
submission.

You will not receive credit for assignments received after the due date. Students registered for
the first semester must submit Assignment 01 for first semester students on or before 15
March 2021 to gain admission to the examination and to have the mark count towards the year
mark. Assignment 02 for first semester students must be submitted on or before 13 April
2021 in order to have the assignment count towards the year mark.

Students registered for the second semester must submit Assignment 01 for second
semester students on or before 03 September 2021 to gain admission to the examination and
to have the mark count towards the year mark. Assignment 02 for second semester students
must be submitted on or before 23 September 2021 in order to have the assignment count
towards the year mark.

If you do not submit Assignment 01 before the relevant date, your registration will be cancelled,
and you will not be admitted to the examination in MRL2601. If you do not submit Assignment 02
you will forfeit a portion of your year mark.

Assignments 01 and 02 will each count 50 per cent of your year mark. The year mark will
count twenty (20) per cent towards your final mark for the module. The examination will then
count 80 per cent towards your final mark.

Instructions for the completion of assignments:

Please ensure that your name, address, student number, the module code, assignment number
and the unique number of the assignment are clearly indicated on the mark-reading sheet. This
information must be correct.

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You will receive a short computer print-out indicating your answers to the assignment, the
correct answers and your mark shortly after the closing date for submission of the assignment.
Thereafter you will receive Tutorial Letter 201 containing commentaries on both of the
assignments.

Please Note: Each semester there are students who submit erroneous mark-reading sheets
that cannot be marked by the computer for Assignment 01. Students also often submit the
incorrect assignment answers (i.e. not the assignment for which they are registered). It is your
responsibility to ensure that you complete the correct assignment, use the correct covering
docket for the module and that your student number and the unique number for the assignment
are correctly reflected thereon. WE RECOMMEND THAT YOU FOLLOW THE INSTRUCTIONS
CLOSELY.

MULTIPLE CHOICE ASSIGNMENT 01 FOR FIRST AND SECOND SEMESTER STUDENTS:

Please read this information very carefully before you start with the assignment. This information is only
relevant if you are submitting the completed mark-reading sheet (i.e. if you submit your assignment by
hand or by mail). If you submit your answers electronically on myUnisa, you need not read the information
dealing with the first assignment below.

• Assignment 01 consists of multiple-choice questions. You must mark your answers

to the assignment questions directly on the orange mark-reading sheet that you
received as part of your study package. This mark-reading sheet will be marked by
the computer. Check that Unisa has supplied you with a mark-reading sheet. Written
answers on a sheet of paper will not be marked.
• Please consult the brochure my Studies @ Unisa for instructions on how to use and
complete a mark-reading sheet, as well as an example of an orange mark-reading sheet
used for assignment purposes. Follow the instructions very carefully.
• Please ensure that your name, address, student number, unique number, module code
and assignment number appear on the mark-reading sheet, and that this information is
correct.
• Please use an HB pencil when you fill in the mark-reading sheet. Please do not use
a pen when you complete the mark-reading sheet. Please mark the number of the
statement that you choose next to the number of the relevant question. You may choose
only ONE statement for each question.
• Each year a number of students submit faulty mark-reading sheets that cannot be
processed by the computer. Sheets that are rejected by the computer will be returned to
students unmarked.

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• When submitting a multiple-choice question assignment to ASSIGNMENTS, you must

send only your mark-reading sheet in one of the brown envelopes that you received as
part of your study package. Do not send an assignment cover sheet with your mark-
reading sheet. You may also submit the assignment via myUnisa. Do not fax the
assignment to the University. Also, do not fax or e-mail the assignment to the
lecturers.
• Do not submit any assignment for a second time. The computer will simply reject this
assignment as a duplicate assignment.
• Make sure that you submit the mark-reading sheet before or on the closing date.
No extension will be granted for the submission of the assignment, since the
assignment is marked by the computer.
• Students who submit the assignment long before the closing date will have to wait for
their results until the assignment is marked by the computer. No results will be
available before the closing date of the assignment.
• Soon after the closing date of the assignment you will receive a computer printout giving
your answers, the correct answers to the questions (i.e. the lecturer’s answers) and your
mark for the assignment.
• Assignment 01 (multiple-choice question assignment) consists of 10 multiple-choice
questions. These questions cover only the units on Partnerships and Business
Trusts. Each question counts one mark. Thus, the assignment counts a total of 10
marks.

It is not easy to complete a multiple-choice assignment. It takes a lot of time and effort. Multiple
choice questions not only test your knowledge, but also your understanding and ability to apply
the study material. You will also be required to answer a number of multiple-choice
questions in the examination. This assignment is therefore an important step in your
preparation for the examination. You will benefit from spending sufficient time in the
completion thereof.

Comprehensive commentary on Assignment 01 will be sent to you in a tutorial letter in due

course, so you can assess your answers against it.

WRITTEN ASSIGNMENT 02 FOR FIRST AND SECOND SEMESTER STUDENTS:

Please read this information very carefully before you start with the assignment.

• Assignment 02 is a written assignment consisting of two 5-mark longer type questions.

Thus, the assignment counts a total of 10 marks.
• Neatness is essential. Plan your answers in advance.
• Assignment 02 contains the type of longer questions that you can expect in the
examination. You should try to answer them under examination conditions. Had the
assignment been two examination questions together counting 10 marks, you would
have been given 10 to 15 minutes to complete them. This means that you cannot write
an answer that is several pages long for a 5-mark question.

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• The background knowledge that you obtain by doing the assignment, provides a good
opportunity to increase your knowledge and understanding of the work, to such a degree
that you will be able to approach the examination with more confidence. The questions in
Assignment 02 are also set on the law relating to Companies and Close Corporations
(i.e. the two sections of the prescribed work on which you will be examined). We suggest
that for revision purposes, you use the Assignment 02 questions for the semester you are
not registered for, as an additional self-evaluation exercise. Please ensure that you
submit the correct assignment to be marked (i.e. the assignment question for the
semester you are registered for).

8.6.1 General approach to answering problem-type questions:

When answering problem type questions, it is important to clarify for yourself the area of the
work which contains the answer. For example, first decide whether you are asked about a trust,
a partnership, a close corporation or a company. The nature of the company is indicated by its
name, for example “(Pty) Ltd” refers to a private company and “Ltd” refers to a public company
and this may be relevant to your answer. The abbreviation “CC” indicates a close corporation.
Different provisions apply in each instance. Take note of the difference between partnerships,
companies and close corporations while you are studying. Refer, for example, to the difference
in relation to formation, membership and representation. Always identify and answer the legal
question with reference to applicable legislation, court decisions and common law. Apply the
legal principles to the particular set of facts. Use the correct terminology. For example, it would
be incorrect to refer to shares or directors in relation to a close corporation. Deal only with those
principles that relate to the given facts. Next, apply these principles to the facts. This is where a
number of students lose marks - they set out the law in some detail, but then do not illustrate
how it applies to the factual situation they have been asked to solve. Finally, state your
conclusion or provide advice. Also remember that the facts are merely there to illustrate the
legal issues we want you to address - if you think the facts are insufficient, just say that it is
impossible to reach a definite conclusion. Do not waste your time on unnecessarily lengthy
speculations on various potential scenarios.

In order to answer problem-type satisfactorily, you must work through the prescribed tutorial
material carefully. The following basic guidelines may assist you in this regard:

Students normally complain that they find it difficult to rewrite the tutorial material in their own
words. Unfortunately, you have to get used to this, because you will not have your tutorial
matter with you during the examination.

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 MRL2601/101/3/2021

However, there are three easy steps to assist you in answering problem-type questions:

(1) Study the relevant tutorial material until you understand it. While you are reading the
particular section or chapter, make notes or lists of the key words and concepts.

(2) Summarise that particular section or chapter in your own words by using your notes and
key words.
(3) Finalise your summary by making use of references to the study material, case law and
other relevant authority.

In order to complete your assignment satisfactorily you are expected to consult the study guide,
the prescribed textbook and tutorial letters. Carefully read the questions, determine what they
pertain to, and use the relevant information in your tutorial material to answer the questions.
Make sure that you have identified the relevant legal aspect, set out the legal principles briefly
with reference to applicable case law and other authorities, applied these principles to the facts
given in the question, reached a conclusion and answered any specific question that may have
been asked.

Restricting the length of assignment answers teaches you to write concise and logical legal
arguments. It is very easy to write a long, rambling answer encompassing everything which
could possibly relate to the problem, but such an answer does not earn good marks. You must
learn to summarise your tutorial material so that you can answer a question in a factually
correct, concise and logical manner. This will also teach you to give similar answers in an
examination.

8.6.2 Comments on assignments

The comments on the compulsory assignment 01 and 02 will be made available only on
myUnisa to all students registered for this module in a follow-up tutorial letter, and not just
to those students who submitted the assignments. As soon as you have received the
comments, please check your answers. The assignments and the comments on these
assignments constitute an important part of your study material for the examination.

8.7 Other assessment methods

There are no other assessment methods for this module.

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8.8 The examination

8.8.1 The examination

During the course of the year, the Examination Section will provide you with information
regarding the examination in general, examination dates and examination times.

Details regarding the format and the scope of the examination will be provided in a follow-up
Tutorial Letter.

8.8.2 Admission to the examination

The timely submission of both assignments is compulsory for gaining admission to the
examination and for your continued registration as a student in this module. Failure to
submit the assignments on time will result in automatic cancellation of your registration
and you will consequently not be allowed to write the exam.

Please note that both assignments contribute towards your year mark and your final
mark for this module. Assignment 01 counts 50% of your year mark, while assignment 02
counts 50%. In turn, your year mark counts 20% of your final mark (on condition that you obtain
at least 40% in the examination). Your examination mark makes up the other 80% of your final
mark.

9 FREQUENTLY ASKED QUESTIONS

Please see Study @Unisa brochure.

10 IN CLOSING
We trust that you will enjoy studying this module and that you will find the knowledge you gain in
the process to be of great value. We wish you all the best with your studies.

YOUR LECTURERS

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 MRL2601/101/3/2021

11 ADDENDUM

ADDENDUM A: COMPULSORY ASSIGNMENTS

ASSIGNMENT 01 FOR FIRST SEMESTER STUDENTS

Due date: 1 5 M a r c h 2 0 2 1
Unique number: 6 1 0 6 7 1
You must submit this assignment in time to remain registered as a student in this
module and to be admitted to the examination

Question 1

Indicate which one of the following is NOT a naturalia (natural consequence) of a partnership
agreement:

(1) The partners share the net losses of the partnership.

(2) The partners own the assets of the partnership as co-owners.
(3) The partners must carry on the partnership business for their joint benefit.
(4) A partner is not entitled to compensation for his or her contribution to the partnership.

Question 2

Indicate which one of the following is critical for the formation of a partnership:

(1) A founding statement.

(2) A Notice of Incorporation.
(3) A Memorandum of Incorporation.
(4) A partnership agreement.

Question 3

In which of the following situations would the actio pro socio NOT be the correct action to
institute between partners?

(1) Partner A wants to apply for an interdict against Partner B to prevent Partner B from
using the partnership assets for personal use.
(2) Partner A wants to apply for a court order declaring which part of the goodwill of the
business he is entitled to after dissolution of the partnership.
(3) Partner A wants to apply for a court order forcing Partner B to comply with the provisions
of the partnership agreement.
(4) Partner A wants to claim dissolution of the partnership because Partner B has acted in
breach of their fiduciary relationship.

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Question 4

Indicate which one of the following is critical for the formation of a trust:

(1) A trust deed.

(2) A Memorandum of Incorporation.
(3) An association agreement.
(4) A founding statement.
Question 5

Mrs Mella is appointed as a trustee of the Olivecrest Business Trust. She is uncertain about the
period for which she must keep the proof of investment documents after the termination of the
trust. Indicate the CORRECT period:

(1) One year.

(2) Two years.
(3) Four years.
(4) Five years.

Question 6

The purpose of a trust is usually to protect the trust property, and to administer and manage it
for the benefit of the …

(1) trustee.
(2) beneficiaries.
(3) Master of the High Court.
(4) founder.

Question 7

Which one of the following is NOT a feature of a business trust?

(1) Only natural persons may be parties to a trust.
(2) The debts of a trust are normally payable out of the trust estate.
(3) A trust may be given perpetual succession.
(4) A trust enjoys greater confidentiality than other forms of enterprise.

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 MRL2601/101/3/2021

Question 8

Indicate which one of the following statements concerning external relationships in trusts is
INCORRECT:

(1) A trustee needs to be formally appointed by the Master before concluding contracts.
(2) If an internal requirement is set in a trust the Turquand rule would no doubt apply.
(3) If a trustee acts outside the scope of his or her authority, the conduct would be void.
(4) If more than one trustee is appointed, the general rule is that they must act together.

Question 9

Lesedi and Beauty are partners in an auditing firm. Their partnership agreement stipulates
that only Lesedi may contract on behalf of the partnership. Beauty purchases a yacht on
behalf of the partnership.

Indicate the CORRECT statement:

(1) The partnership will be bound to the contract to purchase regardless of whether Lesedi
gave his consent, in terms of the principle of mutual mandate.
(2) The partnership will be bound to all contracts concluded in the name of the partnership
because it has a separate juristic personality.
(3) The partnership will be bound to the contract to purchase the yacht o n l y if Lesedi
gave his consent.
(4) The partnership c a n n o t be bound, because the doctrine of constructive notice
applies to partnerships.

Question 10

Indicate the INCORRECT statement:

(1) The Rules of Court provide that a partnership need not sue or be sued in the name of all
partners but may sue in its business name.
(2) The partners, and not the partnership, own the assets of the partnership, because a
partnership is not a juristic person.
(3) If the estate of a partnership sa a juristic person is sequestrated the estates of individual
partners always remain unaffected.
(4) An individual partner cannot be sued for a debt of a partnership during the subsistence of
the partnership.

TOTAL [10]

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ASSIGNMENT 02 FOR FIRST SEMESTER STUDENTS
Due date: 1 3 A p r i l 2 0 2 1
Unique number: 6 5 2 4 4 2
You must submit this assignment on time in order for your assignment to count towards your
final year mark. Please complete both questions and ensure that you submit the correct
assignment (i.e. the assignment for the semester you are registered for).

Question 1

Ntombi is a director in a private company, Gangnam’s Tile (Pty) Ltd. She approaches you for
information on distributions. Explain to her with reference to the Companies Act 71 of 2008 what
a distribution by a company entails. (5)

Question 2

Zingapi wishes to start her own catering business. Her friend Conty registered a close
corporation in 2007 and wishes to sell the business. Zingapi is unsure whether she should
register a company or buy Conty’s close corporation. Advise Zingapi of the advantages of the
close corporation as a business form. (5)

TOTAL [10]

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 MRL2601/101/3/2021

ASSIGNMENT 01 FOR SECOND SEMESTER STUDENTS

Due date: 0 3 S e p t e m b e r 2 0 2 1
Unique number: 892502
You must submit this assignment in time to remain registered as a student in
this module and to be admitted to the examination.

Question 1

Lesedi and Beauty are partners in a dairy. Their partnership agreement stipulates that only
Lesedi may contract on behalf of the partnership. Beauty purchases a dairy farm on behalf
of the partnership.

Indicate the CORRECT statement:

(1) The partnership will be bound to the contract to purchase the farm, regardless of
whether Lesedi gave his consent, in terms of the principle of mutual mandate.
(2) The partnership will be bound to the contract to purchase the farm o n l y if Lesedi
gave his consent.
(3) The partnership will be bound to all contracts concluded in the name of the partnership
because it has a separate juristic personality.
(4) The partnership c a n n o t be bound, because the doctrine of constructive notice
applies to partnerships.

Question 2

Rudolph, Pambu and Preggy have formed a partnership. They ask your advice regarding the
legal nature of partnerships.

Choose the CORRECT option:

(1) A partnership is a jristic person which exists independently of the partners.

(2) The rights and obligations of the partnership are independent from those of the partners.
(3) A partnership estate is considered as a separate estate for purposes of insolvency.
(4) A partnership as a juristic person enjoys perpetual existence.

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Question 3

The actio pro socio is…

(1) An action with which co-partners effect physical division of tangible things that they hold
in co-ownership.

(2) An action that a partner can only bring after dissolution of the partnership against
outsiders.

(3) A derivative action which a partner can institute on behalf of the partnership to enforce its
rights.

(4) A personal action with which an aggrieved partner enforces rights against his or her co-
partners.

Question 4

Indicate which one of the following is NOT a naturalia (natural consequence) of a partnership
agreement:

(1) The partners share the net losses of the partnership.

(2) The partners must carry on the partnership business for their joint benefit.

(3) The partners own the assets of the partnership as co-owners.

(4) A partner is not entitled to compensation for his or her contribution to the partnership.

Question 5

Magenta, Issy and Miranda run a partnership that sells stainless steel kitchen utensils. All the
partners have authority to conclude contracts in terms of the partnership agreement. Cindy, a
mutual friend of the partners, often contracts on behalf of the partnership even though she is not
a partner. The partners are aware of this, but they have never opposed it. Cindy concludes a
contract of purchase and sale in the name of the partnership, for stainless steel spatulas to the
value of R25 000. The partners deny liability for payment of the purchase price, saying that
Cindy is not a partner and that she has no authority to conclude contracts in the name of the
partnership.

The partnership can be held liable on the basis of…

(1) mutual mandate.

(2) the doctrine of constructive notice.

(3) piercing of the corporate veil.

(4) estoppel.

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 MRL2601/101/3/2021

Question 6

A partnership is formed to build an office block. Indicate which of the following does NOT
comply with the requirement that each partner should make a contribution to the partnership:
(1) Maya contributes R10 000 provided it is repaid to her unconditionally within six months.
(2) Patrick undertakes in writing to contribute his expertise as a qualified civil engineer when
required.
(3) Sara contributes the use of a truck that is to remain her personal property.
(4) Connie, an architect, contributes her professional services for which she will be paid R10
000 as soon as a profit is shown.

Question 7

Choose the INCORRECT statement regarding trusts as a business form:

(1) A trustee must separate the trust assets from his own.
(2) Trusts are recognised as juristic persons in the Companies Act 71 of 2008.
(3) CANSA (Pty) Ltd may not be appointed as the beneficiary of a trust.
(4) A trust can be formed by means of the inclusion of a clause in a Will.

Question 8

An agreement concluded by a trustee who has not yet been issued with a letter of authority by
the Master of High Court is …

(1) valid, but unenforceable.

(2) void and unenforceable.
(3) valid, but voidable.
(4) valid and enforceable.

Question 9

Indicate which one of the following is NOT a requirement for the establishment of a trust:

(1) The founder must still be alive at the time that the trust is created.
(2) The founder must have the serious intention to create a trust.
(3) The intention to create a trust must be worded to create an obligation.
(4) The trust must be founded for a acceptable and legal purpose.

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Question 10

Indicate which one of the following statements concerning external relationships in trusts is
INCORRECT:

(1) A contract concluded by a trustee who was not appointed by the Master, is void.
(2) If a trustee acts outside the scope of his or her authority, the conduct would be void.
(3) If more than one trustee is appointed, the general rule is that they must act together.
(4) If an internal requirement is set out in a trust, the Turquand rule would no doubt apply.

TOTAL [10]

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 MRL2601/101/3/2021

ASSIGNMENT 02 FOR SECOND SEMESTER STUDENTS

Due date: 2 3 S e p t e m b e r 2 0 2 1
Unique number: 6 8 9 0 6 6
You must submit this assignment on time in order for your assignment to count towards
your final year mark. Please complete both questions and ensure that you submit the
correct assignment (i.e. the assignment for the semester you are registered for).

Question 1

The auditor of Count Your Money Ltd, Paul, resigned during his period of office due to ill health.
Describe the procedure that Count Your Money Ltd must follow to appoint a new auditor. (5)

Question 2

The founding statement of Ikhaya CC describes the principal business of the close corporation
as, “buying of residential homes for purposes of resale”. Asanda, one of the members of the
corporation, concludes a contract to buy construction equipment on behalf of Ikhaya CC. The
other members of Ikhaya CC reject the contract as invalid on the basis that it goes beyond the
scope of the corporation’s business.

Explain what the capacity of a close corporation is and what consequences a transaction
outside of such capacity holds for third parties. (5)

TOTAL [10]

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ADDENDUM B: TIME SCHEDULE FOR STUDYING MRL2601
Time schedule for studying MRL2601

Please note: This schedule should be used as a guideline only when planning your own
personal study timetable for MRL2601.

Week 1: Read tutorial letters, adapt time schedule, and read the Introduction in the study guide.
(5 hours)

Week 2: Learning Unit 13 (10 hours) (Answer Assignment 01 questions on this study unit)

Week 3: Learning Unit 14 (10 hours) (Answer Assignment 01 questions on this study unit)

Week 4: Complete and submit Assignment 01.

Due date: 15 March 2021 (First semester) or 03 September 2021 (Second Semester).

Study units 1 and 2 (When studying the study units dealing with companies, try to answer the
Assignment 02 questions)

Week 5: Study units 3 - 5 (10 hours)

Week 6: Study unit 6 (10 hours)

Week 7: Study unit 7 (10 hours)

Week 8: Study units 8 – 9 (10 hours)

Week 9: Study units 10 - 12 (10 hours)

Week 10: Study unit 15 (5 hours). Complete and submit Assignment 02. Due date: 13 April
2021 (first semester) or 23 September 2021 (Second Semester) (2 hours)

Week 11: Revise learning unit 15 (10 hours) CC’s count 30% in the exam!

Week 12 to Week 16: Exam revision

Revise all study units dealing with Companies (1- 12) and Close Corporations (15)

Work out previous exam papers available on myUnisa and the answers to assignment 02 for
the other semester in Tutorial Letter 101.

Go through the concept exam in Tutorial Letter 102 and the answers provided in Tutorial Letter
201.

Consult the discussion forum, particularly the study units about which you are uncertain.

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