Exam (elaborations)
MRL2601 ASSIGNMENT01 SEMESTER 02 DUE 10AUGUST2023
- Institution
- University Of South Africa (Unisa)
MRL2601 ASSIGNMENT01 SEMESTER 02 DUE 10AUGUST2023
[Show more]
Content preview
, MRL2601 ASSIGNMENT 01 Semester 2QUESTION 1
Two partners who are practicing as dentists, Susan and Jane, decide
to dissolve their partnership by agreement. The partnership
agreement is silent regarding the goodwill of the partnership. Jane
continues practicing as a dentist and de facto takes the
partnership’s clients (valued at R1 million) over for her own benefit.
Susan feels it is unfair that Jane has taken over all of the clients and
wishes to institute a legal action to claim her part of the goodwill.
Explain whether there is a remedy to Susan’s disposal in these
circumstances. (Your answer should not exceed ½ a page)
In the given scenario, the partnership agreement between Susan
and Jane does not provide any specific provisions regarding the
goodwill of the partnership. However, it is important to note that
the existence and treatment of goodwill in a partnership generally
depend on the specific provisions of the agreement and the laws
governing partnerships in the jurisdiction.
If the partnership agreement is silent on the issue of goodwill, it
may be presumed that the goodwill belongs to the partnership as a
whole, rather than to individual partners. In such a case, neither
partner would have the right to exclusively claim the entire
goodwill for their personal benefit.
If Susan feels that it is unfair for Jane to unilaterally take over all
the clients and profit from the goodwill, she may be able to seek a
legal remedy. Susan can potentially argue that by taking the
partnership's clients for her own benefit, Jane is breaching her duty
of good faith and loyalty towards the partnership and Susan as a
partner.
One possible legal remedy for Susan could be to seek an accounting
and division of the partnership assets. This would involve
presenting evidence to the court to establish the value of the
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller mahimbye. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R53,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
71184 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now