Description
MRL2601 ASSIGNMENT 1 2026
DUE 11 AUGUST 2026
QUESTION 1
1.1 Marcus’s Remedy Regarding Goodwill of the Partnership
In terms of the common law governing partnerships, Marcus and Cobus, partners
practising as quantity surveyors, dissolved their partnership by mutual agreement. The
partnership agreement is silent on the treatment of goodwill. Cobus continued practisinand de facto appropriated the partnership’s client base (valued at R1 million) for his solbenefit. Marcus seeks to claim his share of the goodwill. The central question is whetheMarcus has a legal remedy under South African common law and, if so, what that
remedy entails.
The Nature of Goodwill in a Partnership
Under the common law principles of partnership, goodwill is an intangible asset
representing the reputation, customer connections, and future earning potential of a
business. In a partnership, goodwill is an asset of the partnership and is held by the
partners jointly as co‑owners.¹ The client base of a professional practice is an integral
component of its goodwill.² The partnership agreement being silent on the treatment of
goodwill does not extinguish Marcus’s rights, because the default common law rules
govern the relationship between partners in the absence of contrary agreement.³
Reviews
There are no reviews yet.