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Summary KRG 120: Part 5: Letting and Hiring
This document contains a summary of Part 5: Chapter 16 - 18 of the textbook: Commercial law by Nagel et al.
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Part 5: Letting and HiringChapter 16: Formation of contract of lease
Part 5: Letting and Hiring....................................................................................1
Chapter 16: Formation of contract of lease........................................................1
1. Introduction................................................................................................. 1
2. Definitions................................................................................................... 2
3. General requirements for conclusion of lease.............................................3
4. Essentialia of contract of lease....................................................................4
5. Incidentalia of contract of lease..................................................................4
Chapter 17: Duties of lessor and lessee.............................................................5
1. Duties of lessor............................................................................................ 5
2. Duties of lessee........................................................................................... 7
Chapter 18: Miscellaneous aspects of law of lease...........................................10
1. Sub-lease, Cession, Delegation and Assignment.......................................10
2. Termination of lease..................................................................................10
1. INTRODUCTION
Types of 1. Locatio-conductio rei:
contracts of letting/ hiring of a thing
letting/ 2. Locatio-conductio operarum
hiring letting/ hiring of services
e.g. contract of employment
3. Locatio-conductio operis
letting/ hiring of job/ contract
e.g. to independent contractor
Rent place restriction on quantum of rent that could be charged
Control Act limited grounds on which lessee could be evicted
repealed by Rental Housing Act
Rental none of above restrictions
Housing Act Rental Housing Act 50 of 1999 governs the relationship
between landlords/ tenants in respect of leases for
housing purposes
Rental Housing Amendment Act 35 of 2014 was signed by
the President but is not yet in force
RHA Title: To define the responsibility of Government in respect of
rental housing property;
to create mechanisms to promote the provision of rental
housing property;
to promote access to adequate housing through creating
mechanisms to ensure the proper functioning of the rental
housing market;
to make provision for the establishment of Rental Housing
Tribunals; to define the functions, powers and duties of
1
, such Tribunals;
to lay down general principles governing conflict
resolution in the rental housing sector;
to provide for the facilitation of sound relations between
tenants and landlords and for this purpose
to lay down general requirements relating to leases; to
repeal the Rent Control Act, 1976; and
to provide for matters connected therewith
RHA gives effect to s26 of Constitution of the Republic of South
Africa, 1996
are enforced by Rental Housing Tribunals
Rental any lessee/ lessor may log complaint concerning unfair
Housing practice:
Tribunals o “any act/ omission by landlord/ tenant in
contravention of Act/
o practice prescribed as practice unreasonably
prejudicing rights/ interests of tenant/ landlord”
Process for prima facie dispute
tribunal must:
1. enter particulars of complaints register (Section 13(2)a)
2. investigate if it relates to unfair practice (Section 13(2)b)
3.1 If dispute could be resolved through mediation: Appoints
mediator (S13(2)c)
3.2 Mediation not appropriate/ unsuccessful: tribunal conducts
hearing and makes fair/ just ruling (S13(2)d)
4. May make ruling to discontinue:
o overcrowding
o unacceptable living conditions
o exploitive rentals
o lack of maintenance (S13(4)c)
5. Failure to comply: criminal action instituted (fine/
imprisonment < 2 years (S16)
Applicable To residential leases
Not:
Use of movable property
agricultural land
business purposes
CPA Defines “service” as:
access to/ use of any premises/ property i.t.o. a rental
RHA and RHA only applicable to residential leases
CPA CPA applicable to residential and commercial leases
Act does not apply to consumers whose asset value/
annual turnover > R2mil at time of entering into
transaction
2. DEFINITIONS
Lease of Reciprocal agreement ito which the lessor undertakes
things to confer to the lessee temporary use and enjoyment of a
particular thing = res
for a counter-performance = rent
Lease Under RHA
2
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