Butters v Mncora[1] represents a landmark case in South African law, specifically concerning universal partnerships.
This case emerged as an appeal against a verdict given by Chetty J in the Eastern Cape High Court, Port Elizabeth.
The court clarified that in partnerships that transcend commercial activities, both parties' contributions are not necessarily restricted to a profit-generating entity.
Furthermore, the court affirmed that the formation of a universal partnership encompassing all property does not mandate an explicit agreement.
Lastly, in situations where the parties' behavior might suggest multiple interpretations, the court established the criterion for determining the existence of a tacit universal partnership.