Entrepreneurial Law

MRL2601

Assignment 01

Student name: Kiah Pillay

Unique number: 399703
Student number: 20313799
Question One
Partnerships, as defined by Pezzutto v Dreyer 1992 (3) SA 397 (A)1, are contractual
arrangements between two or more individuals who agree to contribute to a business
for mutual benefit and profit. According to Joubert v Tarry and Co 1915 TPD 2772,
certain essential elements must be present in a partnership agreement for it to be
valid.
Each partner must provide something of economic value to the partnership, such as
money, property, skill, knowledge, expertise, contacts, or experience.
Partners' contributions must be exposed to the risks of the partnership business. If a
partner expects their contribution to be returned in case of failure, it does not meet the
essential requirement.
• Thabelo's contribution of his electrician skills aligns with the essential
requirement.
• David's provision of his Hilux Pickup truck meets the essential requirement.
• Sello's intention to contribute R25,000 satisfies the essential requirement.
However, if Thabelo and David were to reimburse Sello in case of partnership failure,
it would not meet the essential requirement as their contributions wouldn't be exposed
to the partnership's risks. Additionally, if Sello expects repayment in case of failure, it
undermines the essential requirement.
In conclusion, the partnership agreement between Sello, David, and Thabelo would
not be valid due to the conditions surrounding their contributions not meeting the
essential criteria of a partnership agreement.

1
Pezzutto v Dreyer 1992 (3) SA 397 (A).
2
Joubert v Tarry and Co 1915 TPD 277.
Question Two
2.1.1 Paul's action of purchasing a delivery vehicle without provision in the trust deed
raises questions about the lawfulness of his actions regarding trust assets. In
accordance with the Trust Property Control Act: section 6(1)3 a trustee must be
authorized in writing by the Master to act in that capacity. Furthermore, such
authorization typically requires the trustee to furnish security for the due and faithful
performance of their duties.
However, there are exceptions outlined in the provision:
• The Master may dispense with the requirement of security by a trustee if there
are sound reasons to do so.
• The Master may authorize the trustee to perform specified acts regarding the
trust property pending the furnishing of security.
According to the information provided Paul has not obtained such authorization or has
not complied with the requirement of furnishing security, his actions may be deemed
unlawful as they could breach the duty to preserve trust assets.
2.1.2 Duties as a trustee are:
• a duty of care, skill and diligence
• to open a separate trust account at a banking institution
• to indicate in his or her bookkeeping the property held as trustee
• to register trust property as such
• to make trust and trust investment accounts identifiable as such

3
Trust Property Control Act: section 6(1).
 Academic Honesty Declaration:
1. I know that plagiarism means taking and using the ideas, writings, works or
inventions of another as if they were one’s own. I know that plagiarism not only
includes verbatim copying, but also the extensive use of another person’s ideas
without proper acknowledgement (which includes the proper use of quotation marks).
I know that plagiarism covers the use of material found in textual sources and from the
Internet.
2. I acknowledge and understand that plagiarism is wrong.
3. I understand that my research proposal must be accurately referenced.
4. This research proposal is my own work. I acknowledge that copying someone
else’s research, or part of it, is wrong and that submitting identical work to others
constitutes a form of plagiarism
5. I have not allowed, nor will I in the future allow anyone to copy my work with the
intention of passing it off as their own work
6. I confirm that I have read and understood UNISA’s Policy for Copyright and
Plagiarism - https://www.unisa.ac.za/sites/corporate/default/Apply-
foradmission/Master%27s-&-doctoral-degrees/Policies,-procedures-&-forms

Full Name: Kiah Pillay Student No: 20313799

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