QUESTION 1 Indicate whether the following statements are true or false. You need not motivate your answer.

1.1 A partnership comes into existence the moment the partners contribute to the partnership fund.

1.2 Assets contributed to the partnership are co-owned by the partnership and the partners. Petrus and his friends wish to start an animal rescue shelter for their suburb. They can form a partnership.

1.3 Petrus and his friends wish to start an animal rescue shelter for their suburb. They can form a partnership.

1.4 Joe buys a second-hand motor vehicle from Best Buys Cars, but leaves the car with them for new tyres to be fitted. The form of delivery is known as constitutum possessorium.

1.5 The fiduciary relationship between partners will come to an end the moment a partnership is dissolved.

1.6 A, B and C are partners in a business providing transport to and from Windhoek International Airport. One evening, on his way home in a vehicle belonging to the partnership, A is involved in an accident and is injured. A, B and C will be liable, because they are co-owner of the vehicle.

1.7 The Credit Agreements Act will not apply when the agreement is concluded for less than 6 months.

1.8 Patrimonial gain for each partner implies that the partners must receive equal shares of the profit.

1.9 When the credit receiver has failed to pay his instalment and the credit grantor has regained possession of the article without a court order, the credit grantor has to grant the credit receiver a period of 60 days in which he can pay the monies in arrears and regain possession of the article.

1.1.10 A notice of dissolution by one of the partners in a partnership will dissolve the partnership only if the notice is reasonable.

1.11 Section 13 of the Credit Agreements Act of 75 of 1980 is available to the credit receiver when the contract was signed at a place other than the business premises of the credit grantoror as a result of the initiation of the credit grantor.

1.12 The seller is exempted from liability for latent defects in a lay-by agreement. The first delivery of a Bill of Exchange, complete in form, to a person who takes it as a holder is known as issue.

1.13 The first delivery of a Bill of Exchange, complete in form, to a person who takes it as a holder is known as issue.

1.14 Apperson who negotiates a Bill of Exchange by signing and delivering it is known as the indorser.

1.15 The type of partnership where the liability of one or more of the partner sis limited to an agreed amount is known as a silent partnership.

1.16 The duty of partners to avoid negligence in the conduct of partnership business is known as the fiduciary duty of care and skill.

1.17. A sole proprietor is jointly and severally liable for the debts of the business.

1.18 If a partnership has suffered a loss as a result of the negligence of a partner, the aggrieved partners can institute action to recover the loss from that partner.

1.19 An individual partner cannot be sued for a partnership debt while the partnership is in existence.

1.20 Louise, Maria and Doreen want to form a partnership. They must each agree to contribute a sum of money to the partnership.