CLA2601 ASSIGNMENT 1 SEMESTER 1 2025 – FULLY ANSWERED

Description

CLA2601 Assignment 1 Semester 1 | Due 7 April 2025. All questions answered. Question 1
Zane, Bongi, Muthu and Sophy are friends who decide to form a partnership to purchase
and sell new and secondhand mobile phones. Sophy and Bongi will provide the capital to
purchase the initial stock for the partnership. Zane will be responsible for the repair of
mobile phones and Muthu will be responsible for the day-to-day activities regarding the
sales, administration and marketing of the mobile phone business. The parties agree that
the profit derived from the partnership will be divided equally between Bongi, Sophy and
Zane, and that Muthu will receive a monthly salary for his services. Discuss and explain
whether the above terms constitute a valid partnership agreement. Refer to relevant case
law in your answer.
10 marks
Question 2
Explain the formalities and requirements that partners who wish to enter into a partnership
agreement must adhere to in order to conclude a valid partnership agreement. Refer to
relevant case law where applicable.
5 marks
TOTAL: 15 marks