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Questions and Answers
What consequence can occur due to non-compliance with the National Credit Act?
What consequence can occur due to non-compliance with the National Credit Act?
Long leases do not require written documentation to be binding on creditors.
Long leases do not require written documentation to be binding on creditors.
False
What is required before the City of Johannesburg can enter into a lease agreement?
What is required before the City of Johannesburg can enter into a lease agreement?
What must be included in a written lease agreement?
What must be included in a written lease agreement?
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The court determined that the absence of advertisement did not affect the validity of the lease agreement.
The court determined that the absence of advertisement did not affect the validity of the lease agreement.
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Failure to reduce a lease agreement to writing is an offense punishable by a fine and/or imprisonment of up to _____ years.
Failure to reduce a lease agreement to writing is an offense punishable by a fine and/or imprisonment of up to _____ years.
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Match the following terms to their definitions:
Match the following terms to their definitions:
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What did the defense argue regarding the nature of the agreement?
What did the defense argue regarding the nature of the agreement?
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The essential elements of a lease agreement are known as the ______ of a lease.
The essential elements of a lease agreement are known as the ______ of a lease.
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What is the purpose of Section 5(2) of the Rental Housing Act?
What is the purpose of Section 5(2) of the Rental Housing Act?
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A written agreement is always necessary for the validity of a lease.
A written agreement is always necessary for the validity of a lease.
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Which Acts do not apply if the content of rights and obligations of a lease is determined by the contract itself?
Which Acts do not apply if the content of rights and obligations of a lease is determined by the contract itself?
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What three aspects must a lease comply with to be valid?
What three aspects must a lease comply with to be valid?
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A lease is only valid if it complies with both statutory requirements and the intention of the parties.
A lease is only valid if it complies with both statutory requirements and the intention of the parties.
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In a lease agreement, the ______ and lessee have rights and obligations outlined in the contract.
In a lease agreement, the ______ and lessee have rights and obligations outlined in the contract.
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Match the following terms with their descriptions:
Match the following terms with their descriptions:
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What is required for termination of periodic leases not covered by the CPA?
What is required for termination of periodic leases not covered by the CPA?
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A lessee can cancel a lease during the fixed term under the CPA without giving any notice.
A lessee can cancel a lease during the fixed term under the CPA without giving any notice.
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What must be given by both parties during termination of a lease with an indefinite term?
What must be given by both parties during termination of a lease with an indefinite term?
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Under the CPA, a lessor can rescind a fixed-term lease if the lessee fails to comply with the lease terms, providing _____ business days' notice.
Under the CPA, a lessor can rescind a fixed-term lease if the lessee fails to comply with the lease terms, providing _____ business days' notice.
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Match the terms with their descriptions:
Match the terms with their descriptions:
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What can a lessee do under the CPA if the lessor breaches the lease?
What can a lessee do under the CPA if the lessor breaches the lease?
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Termination on notice alone in public rental housing is considered acceptable.
Termination on notice alone in public rental housing is considered acceptable.
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What does the lessee remain liable for after cancellation of a lease under the CPA?
What does the lessee remain liable for after cancellation of a lease under the CPA?
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What is a key requirement for an agent to act on behalf of a principal?
What is a key requirement for an agent to act on behalf of a principal?
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An agent is a party to the legal relationship between the principal and the third party.
An agent is a party to the legal relationship between the principal and the third party.
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What term is used to describe the act performed by an agent on behalf of the principal?
What term is used to describe the act performed by an agent on behalf of the principal?
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For a contract to bind the principal through an agent, all contractual requirements including consensus, capacity, legality, and __________ must be met.
For a contract to bind the principal through an agent, all contractual requirements including consensus, capacity, legality, and __________ must be met.
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Match the following elements of agency with their descriptions:
Match the following elements of agency with their descriptions:
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Which of the following can give rise to an agent's authority?
Which of the following can give rise to an agent's authority?
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An agent can act without any authority from the principal.
An agent can act without any authority from the principal.
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What legal consequence occurs when an agent acts within their authority?
What legal consequence occurs when an agent acts within their authority?
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What defines the limits of what an agent can do?
What defines the limits of what an agent can do?
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Tacit authority is granted only through formal written agreements.
Tacit authority is granted only through formal written agreements.
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What test can be applied to determine tacit authority?
What test can be applied to determine tacit authority?
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Ostensible authority creates an impression of the agent's authority to ________ parties.
Ostensible authority creates an impression of the agent's authority to ________ parties.
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Match the type of authority with its description:
Match the type of authority with its description:
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Which type of authority allows professional agents to act unless restricted?
Which type of authority allows professional agents to act unless restricted?
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Authority must always be granted contractually and cannot be conveyed orally.
Authority must always be granted contractually and cannot be conveyed orally.
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What type of authority arises when a principal's actions create an impression of the agent's authority?
What type of authority arises when a principal's actions create an impression of the agent's authority?
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What does the broadened concept of ostensible authority allow a third party to do?
What does the broadened concept of ostensible authority allow a third party to do?
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An agent is automatically entitled to compensation for their work.
An agent is automatically entitled to compensation for their work.
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What is typically due to the agent upon completion of a task?
What is typically due to the agent upon completion of a task?
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The duties of one party in the principal-agent relationship correspond to the ________ of the other party.
The duties of one party in the principal-agent relationship correspond to the ________ of the other party.
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Match the following terms with their definitions:
Match the following terms with their definitions:
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Which of the following is NOT a form of compensation mentioned?
Which of the following is NOT a form of compensation mentioned?
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A principal must compensate the agent even if there is no benefit received from the agent's work.
A principal must compensate the agent even if there is no benefit received from the agent's work.
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What must the agent prove in order to receive compensation?
What must the agent prove in order to receive compensation?
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Study Notes
Introduction
- Roman law recognized three types of letting and hiring contracts: locatio-conductio rei (letting and hiring of a thing), locatio-conductio operarum (letting and hiring of services), and locatio-conductio operis (letting and hiring of a job).
- Until August 1, 2000, property lease agreements in South Africa were governed by common law and the Rent Control Act of 1976.
- The Rental Housing Act 50 of 1999 repealed the Rent Control Act, removing restrictions and providing mechanisms for resolving disputes.
- It aims to promote adequate housing and resolve conflicts between tenants and landlords.
- The Rental Housing Amendment Act 35 of 2014 may introduce further changes to lease agreements, though not yet in force.
Definitions
- A lease of things is a reciprocal agreement where the lessor gives the lessee temporary use and enjoyment of a thing in exchange for counter-performance.
- Landlords are the owners of a dwelling or their authorized agents or people with lawful right to lease.
- Tenants are the lessees of dwellings leased by landlords.
- Dwelling includes houses, rooms, flats, and parking spaces.
- A rental agreement involves temporary possession or use of property.
- National Credit Act does not apply to common-law leases without deferred payments.
- Hire-purchase agreements of movables are regulated by the National Credit Act.
- Section 13(1) of the Rental Housing Act allows complaints about unfair practices.
General Requirements for Conclusion of the Lease
- A lease is primarily a contract.
- The agreement must meet requirements of consensus, contractual capacity, legality, physical possibility of performance, and formalities.
Formalities
- A lease can be concluded tacitly, verbally, or in writing.
- Leases involving movables must be in writing under the National Credit Act, treating them as contracts of sale on credit.
- A written lease must include details like names, addresses, description of dwelling, rental amount, payment frequency, deposit, lease period, and additional charges.
Essentialia of the Contract of Lease
- The lease must comply with three aspects: leased property, temporary use, and rent.
- The Rental Housing Act and Consumer Protection Act may introduce further essential terms for lease contracts.
- Leased property can be immovable, movable, corporeal, or incorporeal.
- Leased property must be identifiable.
- Movables are included in lease if intended to accompany leased property.
- Land leased without mentioning immovable structures includes them.
Temporary Conferment of Power of Use and Enjoyment
- The lessee gets temporary use and enjoyment of the property, not consumption or destruction.
- Property cannot be leased in perpetuity.
- Fixed dates, or periodic leases are possible.
- Section 14 of the Consumer Protection Act limits fixed-term agreements.
Nature and Extent of Counter-Performance
- Agreement on the nature and extent of rent (must be explicitly stated).
- Rent can consist of fixed amounts, formulas, or third-party determination.
- Courts may correct unjust rent determinations but not compel performance changes.
- Lease is not considered a lease if essential elements are absent (e.g., partnership, loan).
Duties of the Lessor
- The lessor must provide the property and allow temporary use as agreed.
- The property must be delivered in the agreed condition.
- If no condition is agreed, the property must be in the condition when the contract was signed.
- If let for specific purposes, the property must meet legal requirements.
- The lessor must maintain the property, unless otherwise agreed.
- The Consumer Protection Act ensures safe and habitable conditions.
- Remedies include specific performance, rescission, and damages.
Providing Undisturbed Use and Enjoyment
- The lessor guarantees undisturbed use and enjoyment of the property.
- The lessor is responsible for actions/omissions of third parties to disrupt enjoyment if better title dispute is not managed.
- The lessor has the right to inspect the property with notice, and the lessee must tolerate repairs with potential rent reduction.
Compensation for Attachments and Improvements
- Compensation for attachments and improvements must be agreed upon.
- The Placcaat of 1658 (and re-enactment in 1696) governs compensation for attachments and improvements in South African law.
- Lessees can claim compensation for improvements made with permission, but not without.
- Lessees cannot get a lien over the property for improvements.
- Useful and necessary improvements lead to compensation based on expenditures/market value.
Duties of the Lessee
- The lessee must pay rent as agreed, use the property reasonably, and return property on termination.
- Rent should be paid by agreed date, often end of period or in advance.
- Payment must be made even on holidays.
- If lessor refuses valid payments, the tenant is not in default.
- The lessee is responsible for timely payments and possible late payment/loss risks.
- If payment is by mail, the risk of loss/late payment is borne by the lessee.
- Payment can be made at agreed location, or the lessor's office.
Liability toward Third Parties
- The principal is liable for an agent's delict if the agent is an employee and the delict occurred during employment.
- The principal is liable if they authorized or knew about the act.
- The agent is liable if they fraudulently misrepresented their authority.
- If an agent sells property in their name, the principal can reclaim it.
Special Types of Principals
- Non-existing Principal: No legal validity to a contract with a non-existent principal.
Special Types of Agents
- Brokers: Intermediaries who assist or conclude contracts.
- Estate Agents: Regulated under specific legislation to manage real estate.
- Auctioneers: Who sell property at auction.
- Company Representatives: Who act on behalf of a company.
Conclusion and Contents of Contracts
- A valid contract requires consensus, contractual capacity, legality, possibility, and certainty.
- Consensus is achieved through offer and acceptance.
- Options and preferential rights are used in contracts.
- Contracts are typically completed when acceptance is confirmed, regardless of communication method.
- Key elements are essentialia, naturalia, and incidentalia.
- Important conditions can affect contract enforceability (suspensive/resolutive).
Miscellaneous Matters
- Contracts may be terminated by force majeure, risk transfer, and insurance provisions.
- Contracts for dangerous work necessitate specific considerations.
- Principles for duties of the client relate to payment for services rendered, including appropriate acceptance for work completed.
- Client may withhold payment if contractor's work isn't appropriate, consistent with the law.
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Description
This quiz covers key concepts related to lease agreements, including legal requirements, compliance with the National Credit Act, and essential elements of lease contracts. Test your understanding of the implications of non-compliance and the specifics that must be included in a written lease agreement.
