Description
FBE2604 ASSIGNMENT 2 2026
DUE AUGUST 2026
1.1 Whether a valid partnership existed
A partnership is defined as a legal relationship created by contract between two or more
persons, in which each partner agrees to make some contribution to the partnership
business, which is carried on for the joint benefit of the parties with the object of makinga profit (Pezzutto v Dreyer and others 1992 (3) SA 397 (A);The essential elements
(essentialia) of a partnership, as outlined in the study material, are contribution, joint
benefit, profit motive, and a legitimate contract (FBE2604 Study Guide, Study Unit 14, p109).
Contribution by each partner
Each partner must contribute something of economic value, such as money, property,
skill, or knowledge (FBE2604 Study Guide, Study Unit 14, p. 109). Thabo, Lerato and
Aisha each contributed R30 000 in cash, which fully satisfies this requirement.
Business carried on for the joint benefit of the parties: Each partner must be entitled to
share in the net profits. Their agreement to share profits equally satisfies this essential
element (FBE2604 Study Guide, Study Unit 14, p. 109).
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