Description
FBE2604 Assignment 1 Semester 1 Memo | Due 24 March 2026 . All questions fully answered. Question 1
Thabo and Lerato agree to start a business selling organic skincare products. Thabo contributes R100 000 in cash but insists that this amount must be repaid to him in full even if the business fails. Lerato contributes her expertise, industry contacts, and manages the day-to-day operations. The parties agree that Lerato will receive 30% of the profits only if the business makes more than R200 000 in net profit per year. No written agreement is concluded.
After two years, a dispute arises. Thabo claims that a partnership exists and demands that Lerato share in the losses incurred by the business. Lerato argues that no partnership was ever formed.
With reference to the essentialia of a partnership agreement and relevant case law, advise whether a valid partnership exists between Thabo and Lerato. (10 marks)
Reviews
There are no reviews yet.