Well-structured MRL2601 Assignment 2 (ANSWERS) Semester 2 2024 - DISTINCTION GUARANTEED. (DETAILED ANSWERS - DISTINCTION GUARANTEED!)..... QUESTION 1
Johannes, Phineas and Beauty are Mnandi CC’s members. Beauty has discovered that Phineas concluded a contract on behalf of Mnandi CC for the purch...
MRL2601 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 (867625) - DUE 20 September 2024
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University of South Africa (Unisa)
Entrepreneurial Law (MRL2601)
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MRL2601
Assignment 2 Semester 2 2024
Unique Number: 867625
Due Date: 20 September 2024
QUESTION 1
In addressing whether Mnandi CC is bound to the contract concluded by Phineas for the
purchase of a yacht, it is crucial to examine the provisions of the Close Corporations Act 69 of
1984 and relevant case law. According to Section 54 of the Close Corporations Act, any
member of a corporation is considered an agent of the corporation in dealings with persons who
are not members, binding the corporation to such transactions. This agency relationship applies
regardless of whether the act was performed within the scope of the corporation's business,
provided the third party did not know, nor could reasonably have known, that the member lacked
authority to act on behalf of the corporation.
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