Theme 2
Chapter 16
Law that governs contract of lease
Rental Housing Act 50 of 1999
Definition of a lease
A lease of things- a reciprocal agreement where lessor undertakes to confer upon another
party, the lessee, temporary use and enjoyment of a particular thing in exchange of counter-
performance.
Lease under Rental Housing Act- agreement of lease concluded between a tenant and a
landlord in respect for housing purposes.
Consumer Protection Act- access to or use of premises in terms of a rental.
General rule and statutory exceptions regarding formalities in lease agreements
Can be concluded tacitly, verbally, or in writing.
There must be consensus, contractual capacity, legality, formality, and physical possibility of
performance.
Trying to reach consensus prior to agreement through marketing is prohibited.
By RHA, a lessee has the right to ask to reduce contract to writing, and must be complied
with, otherwise guilty and liable on conviction max. two years.
Names of lessee and lessor, description of dwelling, amount, amount of deposit, lease
period, obligations, etc. must then be included
Written lease agreement must be written in plain language.
Essentialia
1. Consensus on the leased property
2. Use and enjoyment is only temporary
3. Counter-performance must be delivered
Influence of CPA on the period of contract of lease
Limits fixed-term contracts to a maximum period of 24 months unless a longer period is
expressly agreed to by both parties.
, Chapter 17
Duties of lessor
1. Delivery of leased property
2. Maintenance of property
3. Ensuring undisturbed use and enjoyment of property
4. Compensation for attachments and improvements
Duty of delivery of leased property
Must make property available to lessee (etc. give keys to house to them)
Property must be delivered in condition agreed upon
If no agreement on condition, it must be delivered the way it was at the time of
contracting
Maintenance of leased property
Lessor must maintain property for duration leased
Lessor is not obliged to repair damage caused by lessee
Minor repairs must be undertaken by lessee as it is presumed, he is responsible for it
(timely performance, timely notice of any unavoidable delay.)
Lessee’s remedies
1. Specific performance
2. Recission
3. Damages
4. Reduction of rent
5. Lessee himself undertakes repairs
6. Specific remedies (refund portion of rent)
Providing undisturbed use and enjoyment
Lessor guarantees that the lessee
will have the undisturbed use and
enjoyment of property.
If lessor is not owner + does not
comply with obligation, lessee
cannot claim specific performance
but damages.
Lessor may not disturb lessee’s
use and enjoyment + must
guarantee that no third party with
a better title will disturb the
lessee.
Chapter 16
Law that governs contract of lease
Rental Housing Act 50 of 1999
Definition of a lease
A lease of things- a reciprocal agreement where lessor undertakes to confer upon another
party, the lessee, temporary use and enjoyment of a particular thing in exchange of counter-
performance.
Lease under Rental Housing Act- agreement of lease concluded between a tenant and a
landlord in respect for housing purposes.
Consumer Protection Act- access to or use of premises in terms of a rental.
General rule and statutory exceptions regarding formalities in lease agreements
Can be concluded tacitly, verbally, or in writing.
There must be consensus, contractual capacity, legality, formality, and physical possibility of
performance.
Trying to reach consensus prior to agreement through marketing is prohibited.
By RHA, a lessee has the right to ask to reduce contract to writing, and must be complied
with, otherwise guilty and liable on conviction max. two years.
Names of lessee and lessor, description of dwelling, amount, amount of deposit, lease
period, obligations, etc. must then be included
Written lease agreement must be written in plain language.
Essentialia
1. Consensus on the leased property
2. Use and enjoyment is only temporary
3. Counter-performance must be delivered
Influence of CPA on the period of contract of lease
Limits fixed-term contracts to a maximum period of 24 months unless a longer period is
expressly agreed to by both parties.
, Chapter 17
Duties of lessor
1. Delivery of leased property
2. Maintenance of property
3. Ensuring undisturbed use and enjoyment of property
4. Compensation for attachments and improvements
Duty of delivery of leased property
Must make property available to lessee (etc. give keys to house to them)
Property must be delivered in condition agreed upon
If no agreement on condition, it must be delivered the way it was at the time of
contracting
Maintenance of leased property
Lessor must maintain property for duration leased
Lessor is not obliged to repair damage caused by lessee
Minor repairs must be undertaken by lessee as it is presumed, he is responsible for it
(timely performance, timely notice of any unavoidable delay.)
Lessee’s remedies
1. Specific performance
2. Recission
3. Damages
4. Reduction of rent
5. Lessee himself undertakes repairs
6. Specific remedies (refund portion of rent)
Providing undisturbed use and enjoyment
Lessor guarantees that the lessee
will have the undisturbed use and
enjoyment of property.
If lessor is not owner + does not
comply with obligation, lessee
cannot claim specific performance
but damages.
Lessor may not disturb lessee’s
use and enjoyment + must
guarantee that no third party with
a better title will disturb the
lessee.
