MRL2601/01/2024

Assignment 1

ENTREPRENEURIAL LAW
MRL2601

Semester 1

Department of Mercantile Law

 CONTENTS
Page

1 INSTRUCTIONS ON COMPLETING THE ASSIGNMENT QUESTIONS ........................................... 3

2 Assignment due date ........................................................................................................................3
3 Assignment 1 ....................................................................................................................................4

2
 MRL2601/01/1/2024

Dear Student,

1 INSTRUCTIONS ON COMPLETING THE ASSIGNMENT QUESTIONS

There are TWO assignments in this module. Both assignments are compulsory. Both Assignments
01 and 02 contribute to your year mark. Remember that your assignment must be numbered number 01
or 02.

You should also provide the unique number for Assignment 01 and Assignment 02. State the
module code and assignment number in all enquiries about assignments.

If you do not submit either Assignment 01 or Assignment 02 before the relevant date, your
registration will be cancelled, and you will not be admitted to the examination in MRL2601.

No extension: No extension for submission of the assignment will be granted under any
circumstances. Assignments received after the due date will be returned unmarked.

Please read this information very carefully before you start with the assignment.

• Assignment 01 is a written assignment consisting of longer type questions. The assignment

counts a total of 20 marks.
• Neatness is essential. Plan your answers in advance.
• Assignment 01 contains the type of longer questions that you can expect in the examination. You
should try to answer them under examination conditions. Had the assignment been examination
questions together counting 20 marks, you would have been given 60 minutes to complete them.
This means that you cannot write an answer that is several pages long for a 5-mark question.
• The questions in Assignment 01 are set on the law relating to Partnerships and Trusts. You
write off this component of the work in this assignment. You will be examined only on Companies
and Close Corporations.
• Please ensure that you submit the correct assignment to be marked.

2 Assignment due date

The closing date for the submission of the assignment is:

Assignment number Closing date

Assignment 01: 15 March 2024 at 23h00

(Unique number: 399703) (the submission link will be open

from 15 February 2024 at
08h00)
3 Assignment 1

This is an ordinary written or typed assignment. Do not use a mark-reading card.

Answering this question gives you practice in answering the type of problem- or
discuss-type questions that you may expect in the examination. Your answer per
question should not exceed one page. You may reference your sources as you wish, i.e.
in-text, or in footnotes. A bibliography is not needed but remember to include your
Honesty Declaration Form.
Question 1
Sello, Thabelo and David want to start a partnership with the aim of selling Solar batteries.
Sello intends to contribute R25 000.00 on condition that should the partnership fail,
Thabelo and David will reimburse him. Thabelo intends to contribute his expertise as an
electrician. David intends to contribute the use of his Hilux pickup truck. They come to you
for advice on whether a partnership agreement will be valid based on what each of them
wants to contribute. Advise them fully. (In your advice, define a partnership, deal with
each contribution and conclude.) (10)

Question 2
2.1 Paul is a trustee of a business involved in the retail of computer equipment. Although
the trust deed makes no provision for it Paul buys a delivery vehicle to transport the
computer equipment.

2.1.1 Given the requirement that a trustee must preserve trust assets, indicate
whether Paul has acted lawfully. (5)

2.1.2 Explain to Paul what his other duties as trustee are by listing five of the
other duties of a trustee. (5)

TOTAL: 20 marks