Summary 1 Agreement _ Its Conclusion

Agreement & Its Conclusion


Definition
- Contract of lease: reciprocal agreement in terms of which one party, lessor,
undertakes to give other party, lessee, temporary use & enjoyment of leased
property, in total/in part, in return for monetary remuneration (rent).
- Distinguished from other forms of contract on basis of their essentialia:
1. lessor must deliver leased property & can’t remain in possession of
property
2. lessee only has temporary use & enjoyment of property & has to return
it to lessor at end of lease period
3. lessee must pay rent for use of leased property.
- All three elements must be present & type of contract depends on intention
- Has to comply w/general principles applicable to all contracts.



Leased Property
- Property that is leased must be in commercial sphere
- Property can be movable/immovable in nature.
- Should be corporeal in nature.
- Property must be certain/ascertainable.




Use & Enjoyment
- Use & enjoyment of property must be temporary.
- During duration lease, lessee may not consume, dispose of/alienate property.
- Lessee has duty to return property in original form & condition to lessor, taking
into account normal wear & tear.



Limited Duration of Time
- Lease is only aimed at temporary use of property.
- It should be fixed period from certain date/event to another date/event that will
happen/for set period of time
- If it is for indefinite period it will be lease if can be terminated by 1 at any time.
- Can also be on periodical basis