This is a full summary of the LAW SU 3.2 Department of your BSCI112 module if you are a NWU student.
If you are not a NWU student you can still use this summary if you have Business sciences as a module at your university.
The common law rules in connection with letting and hiring:
Describe the contract of a lease :
Essentialia of the contract of the lease :
The essentialia of a contract are the essential minimum characteristics which have
to be contained in a contract in order to identify the contract as a certain nominate
contract and to distinguish it from other nominate contracts.
11.09
A contract of lease exists as soon as the parties reach a consensus on the following:
- The property which is to be leased.
- The fact that temporary use and enjoyment of the property will be given to the
lessee by the lessor.
- The fact that the lessee will pay the lessor a determined or determinable
amount of rent in respect of the use of property.
11.11 The property leased :
- The property that is leased must be determinable or determined at the time
the contact is concluded.
- It cannot be unclear of what is leased.
11.12 Use and enjoyment of the property:
- Purpose is for the lessee to obtain the use and enjoyment of the certain
specific property.
- Any contract which entitles a person to more than this ( which gives wider
powers or rights to the property) is not a contract of lease.
11.13 Use and enjoyment for a certain period :
- An agreement must exist between the lessor and lessee in terms of which the
lessee is entitled to only the temporary use and enjoyment of the property.
- The period of the lease cannot be forever.
11.14 Compensation ( rent ) :
The lessor and the lessee must :
1. Agree expressly on a amount of rent
2. Determine a formula in terms of which rent can be determined
3. Nominate a third party or group of persons to determine the rent.
, Anjé van Pletzen
11.15.
Where agricultural land is leased, the rent may consist wholly or in part of a share in
the fruits of the land.
11.16 Formalities :
- In terms of the common law, no formalities are required for a contract of lease
to be valid.
Duties of the lessor :
A lease is a reciprocal agreement, which means that both the lessor and the lessee
have rights and obligations in terms of the contract.
Only if the parties did not agree otherwise, the lessor will have the following common
law duties :
1. The duty to deliver the leased premises to the lessee.
2. The duty to maintain the leased premises.
3. The duty to provide undisturbed use and enjoyment of the property to the
lessee.
4. The duty to compensate the lessee for attachments and improvements.
In terms of the Rental Housing Act, 50 of 1999, the lessee also has certain rights
against the lessor, namely :
In advertising a dwelling for purposes of leasing , or negotiating a lease or
during the terms of the lease, not to be discriminated.
The right not to have his/her person, home or property.
The right not to have his/her possessions seized, except in terms of the law
and only after obtaining of an order of court.
The right not to have his/her privacy of communications infringed.
11.24 The lessor is required :
a) Delivery of the property :
- You must deliver the property in the condition and state of repair as agreed
on.
- If no agreement was reached, the property must be in the condition it was at
the time of the conclusion of the contract and all necessary for proper use and
enjoyment must be delivered.
b) Maintenance of the property:
- The lessor has to keep the property in the same condition in which it was at
the time the contract was concluded.
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