100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
MRL2601 Assignment 1 Semester 1 | Due 12 March 2025 R50,00
Add to cart

Exam (elaborations)

MRL2601 Assignment 1 Semester 1 | Due 12 March 2025

 1 purchase

MRL2601 Assignment 1 Semester 1 | Due 12 March 2025. All questions answered. Question 1 1.1. 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 continu...

[Show more]

Preview 2 out of 7  pages

  • January 29, 2025
  • 7
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:
All documents for this subject (52)
avatar-seller
Aimark94
, PLEASE USE THIS DOCUMENT AS A GUIDE TO ANSWER YOUR ASSIGNMENT

Please also note that the author of this document will not be responsible for any plagiarism you
commit.

 Question 1

1.1. 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 the clients and wishes to institute legal action to claim her part of the goodwill. Explain
whether there is a remedy at Susan's disposal in these circumstances.

Introduction
When a partnership dissolves, disputes may arise regarding the division of assets and adherence to
fiduciary duties. In Susan’s case, Jane’s actions of taking partnership clients for personal gain raise
legal concerns. The following analysis outlines Susan’s potential remedies based on partnership law
principles.

Partnership Dissolution and Goodwill
 Upon dissolution, a partnership’s mutual mandate is terminated, preventing any partner from
binding the others in new agreements.
 However, fiduciary duties continue during the liquidation phase, requiring partners to act in the
best interests of the partnership and refrain from improper acquisition of assets.
 Partners must account to each other during liquidation and retain the right to inspect
partnership books.
 Post-dissolution, partners share joint and several liability for the partnership’s debts, meaning
any partner can be held responsible for the full amount.
 A partner who overpays their share of a debt has the right to recover excess contributions from
former partners.
 Partners are entitled to their share of surplus assets after settling all debts.
 Liquidation involves asset realization, debt payment, and distribution of remaining assets.
 If partners become joint owners of tangible or intangible assets, they may seek division through
actio communi dividundo or utilis actio communi dividundo.

Fiduciary Duty and Exploitation of Opportunities
 A partner must act in the partnership’s best interest, avoiding conflicts of interest.
 Business opportunities within the partnership’s scope must benefit the partnership rather than
individual partners.
 Any gains from a breach of fiduciary duty must be disclosed and shared with the partnership.
 Without consent, a partner may not engage in competition with the partnership or solicit its
clients.
 Transparency among partners is required regarding any material information affecting the
partnership.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

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

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 Aimark94. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for R50,00. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

68137 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 15 years now

Start selling
R50,00  1x  sold
  • (0)
Add to cart
Added