PRL5901 Assignment 2 Due 20 September 2024 (Detailed solution)
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Course
Drafting of Commercial Contracts
Institution
University Of South Africa
Book
Drafting and Negotiating Commercial Contracts
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PRL5901 Assignment 2 Full Solutions 2024 (Unique Nr. 527068) - DUE 20 September 2024 ;100 % TRUSTED workings, Expert Solved, Explanations and Solutions..
PRL5901 Assignment 2 Full Solutions 2024 (Unique Nr. 527068) - DUE 20 September 2024 ;100 % TRUSTED workings, Expert Solved, Explanations and Solutions..
PRL5901 Assignment 2 Full Solutions 2024 (Unique Nr. 527068) - DUE 20 September 2024 ;100 % TRUSTED workings, Expert Solved, Explanations and Solutions..
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Drafting of Commercial Contracts
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PRL5901
ASSIGNMENT 02
DUE DATE: 20 SEPTEMBER 2024
, Legal Advice to Mrs. B on the Proposed Agreement
1. Restriction to Age of Tenants: Between 30 and 40 Years of Age
Legality: Under the Promotion of Equality and Prevention of Unfair Discrimination
Act, 2000 (PEPUDA), this clause is probably unconstitutional. Discrimination on the
grounds of age is impermissible unless it can be justified under certain
circumstances. Mrs B would need to ensure that this type of restriction does not
amount to unfair discrimination unless she can reasonably motivate it.
2.-Exclusion of liability to pay damages
Legality: The clause where Mrs B excludes her liability for any damage, even if it is
caused by her own fault, is the problem. In effect to the South African law, and more
particularly the Consumer Protection Act, 2008—exclusion clauses that are unfair,
unreasonable, and injust—may be declared void. Therefore, Mrs B cannot exclude
liability for damage caused by her fault or intentional acts.
3. Right to Summary Terminate the Agreement
Legality: This clause is also most likely problematic because the Rental Housing Act,
1999 states that landlords must give reasonable notice to tenants before terminating
a lease agreement. Summary termination without giving a reason might be
considered unfair and unenforceable. Still more, even if Mrs. B decides to sell the
apartment, she cannot terminate the lease without due notice unless agreed upon in
the lease, and even then it must be reasonable.
4. Minimum Lease Duration of Two Years
Legality: Mrs B has a legal right to require long-term tenants. However, the request
for a longer lease cannot be done in such a way that it substantially curtails the rights
of the would-be tenants. Lease conditions should be openly expressed and justifiable
and potential tenants should be given a clearer notice of the need to sign into an at
least two-year lease agreement.
5. Tenant Forfeits His Security Deposit If He Cancels End of Summer
Autorenewal is not a valid provision in South African law, neither can the security
deposit of a tenant be automatically forfeited upon cancellation. Under the Rental
Housing Act, a deposit is made to accommodate damages that may arise in a living
place, and any residue is to be given back to the tenant. It can be forfeited if it is so
provided in the agreement and in the case that the tenant is in breach of contract,
but then and there, it has to be proportionate and reasonable.
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