Real Estate Law Overview
40 Questions
3 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What type of expenses may be compensated under the rules of unjustified enrichment for immovable property?

  • Neither necessary nor useful expenses
  • Only necessary improvements
  • Only useful expenses
  • Both necessary improvements and useful expenses (correct)

    • Prior to the Mpange case, courts were generally willing to grant specific performance in lease disputes.

    False

    What constitutional right was connected to the decision in the Mpange case?

    Right to adequate housing

    Compensation is not granted if there is no __________ for improvements made to immovable property.

    <p>permission</p> Signup and view all the answers

    Which of the following does NOT apply in the case of unjustified enrichment?

    <p>Compensation for ornamental expenses</p> Signup and view all the answers

    What discretion do courts have regarding specific performance in lease agreements?

    <p>Courts can decide to grant specific performance based on unique circumstances.</p> Signup and view all the answers

    Match the following terms with their definitions:

    <p>Necessary improvements = Compensation for maintenance expenses Useful expenses = Compensation for increased market value Specific performance = Legal enforcement of a contract Unjustified enrichment = Compensation for benefits received without permission</p> Signup and view all the answers

    A failure to perform maintenance may infringe on a lessee’s rights to __________, dignity, and privacy.

    <p>adequate housing</p> Signup and view all the answers

    Under what condition can a lease be terminated by the death of a contracting party?

    <p>If the lease explicitly states termination upon death</p> Signup and view all the answers

    What is a key requirement for an agent to act on behalf of a principal?

    <p>The agent must have authority or permission</p> Signup and view all the answers

    A lease automatically terminates when the lessor becomes insolvent.

    <p>False</p> Signup and view all the answers

    An agent is a party to the legal relationship between the principal and third party.

    <p>False</p> Signup and view all the answers

    What happens to a usufruct when the usufructuary dies?

    <p>It ends upon their death.</p> Signup and view all the answers

    What are the three parties involved in agency relationships?

    <p>Principal, Agent, Third Party</p> Signup and view all the answers

    If the highest bid for a property is insufficient to redeem the mortgage, the property is sold ________ the lease.

    <p>free of</p> Signup and view all the answers

    Which statement is true regarding the lessee's insolvency under the Insolvency Act?

    <p>The trustee has the option to terminate the lease within three months.</p> Signup and view all the answers

    The act of agency refers to the juristic act performed by the agent on behalf of the __________.

    <p>principal</p> Signup and view all the answers

    Which of the following is NOT a way authority can be granted to an agent?

    <p>By relation</p> Signup and view all the answers

    A lease stipulation terminating the lease upon the lessee's sequestration is valid.

    <p>False</p> Signup and view all the answers

    A lessee cannot demand specific performance but can claim ________ from the lessor's deceased estate.

    <p>damages</p> Signup and view all the answers

    For a contract concluded by an agent to bind the principal, all contractual requirements must be met.

    <p>True</p> Signup and view all the answers

    Match the following terms with their descriptions:

    <p>Lease termination by death = Conditional upon the lease agreement's terms Insolvency of the lessor = Does not terminate the lease Insolvency of the lessee = Trustee may terminate within three months Usufructuary = Ends upon their death</p> Signup and view all the answers

    Match the following terms related to agency with their definitions:

    <p>Principal = The party who authorizes an agent to act on their behalf Agent = The party who acts on behalf of the principal Third Party = The person or entity affected by the agent's actions Authority = The power granted to the agent to act for the principal</p> Signup and view all the answers

    What is the consequence if an agent acts within the scope of their authority?

    <p>The rights and duties arise as if the principal acted directly.</p> Signup and view all the answers

    What defines the limits of what an agent can do?

    <p>Express authority</p> Signup and view all the answers

    Tacit authority can only be granted through formal written communication.

    <p>False</p> Signup and view all the answers

    What test is used to determine whether tacit authority exists?

    <p>Objective bystander test</p> Signup and view all the answers

    ________ authority arises when the principal's actions create an impression of the agent’s authority.

    <p>Ostensible</p> Signup and view all the answers

    Match each type of authority with its characteristic:

    <p>General authority = Permission to perform related tasks Special authority = Authorized for specific tasks Professional authority = Customary actions for professionals Ostensible authority = Impression of authority to third parties</p> Signup and view all the answers

    Which of the following types of authority allows an agent to perform tasks necessary for their role?

    <p>General authority</p> Signup and view all the answers

    An agent with professional authority can act outside the customary boundaries of their profession.

    <p>False</p> Signup and view all the answers

    Can authority be granted orally without formal requirements?

    <p>Yes</p> Signup and view all the answers

    Which of the following statements is true regarding express and implied agency?

    <p>There is no distinction between express and implied agency.</p> Signup and view all the answers

    Ostensible authority is now based on estoppel as a necessary element.

    <p>False</p> Signup and view all the answers

    What element is now required for ostensible authority?

    <p>An impression that the agent has authority to act on behalf of the principal</p> Signup and view all the answers

    Ostensible authority is now seen as a form of _____ authority.

    <p>actual</p> Signup and view all the answers

    Match the following terms with their definitions:

    <p>Ostensible Authority = An impression of authority to act on behalf of the principal Estoppel = A legal principle that prevents a person from arguing something contrary to a claim made or implied by their previous words or actions Actual Authority = Explicitly granted permission for an agent to act on behalf of a principal Implied Agency = Authority that is not explicitly stated but inferred from the actions of the parties</p> Signup and view all the answers

    What has been clarified regarding the role of estoppel in ostensible authority?

    <p>It is no longer necessary for establishing ostensible authority.</p> Signup and view all the answers

    An agent with ostensible authority cannot bind the principal.

    <p>False</p> Signup and view all the answers

    According to the recent ruling, how does ostensible authority view the agent's appearance of authority?

    <p>It can bind the principal like an agent with actual authority.</p> Signup and view all the answers

    Study Notes

    Permission But No Agreement on Compensation

    • Rules of unjustified enrichment apply if there is permission to use immovable property but no agreement on compensation
    • Compensation for necessary improvements: All expenses for maintaining or protecting the property
    • Compensation for useful improvements: If they increase the market value of the property
    • Placaat will not be assessed for compensation purposes
    • If the Placaat is not applicable, no permission means no compensation

    Lease Obligations

    • Property must be maintained in a way that is suitable for its intended use
    • Courts were traditionally reluctant to grant specific performance in lease disputes, believing it unfair to force parties to continue a lease they no longer wanted
    • The Mpange case established that specific performance can be granted in lease disputes
    • Specific performance should be considered when a failure to perform maintenance negatively impacts the lessee's housing rights
    • The Mpange case connected this to the constitutional right to adequate housing
    • Specific performance should be granted when the lessor's failure to maintain the property infringes on the lessee's constitutional rights

    Death and Leases

    • Death of a contracting party generally does not terminate a lease unless explicitly stated in the agreement
    • Termination upon the death of a party may occur if the lease is only valid as long as the lessor's or lessee's will
    • A usufruct ends upon the usufructuary's death
    • If the lessee was unaware of the lessor's limited rights, the lessee cannot demand specific performance but can claim damages

    Insolvency

    • Insolvency of the lessor does not automatically terminate a lease
    • For immovables, the lease is sold subject to the "huur gaat voor koop" rule unless another real right (e.g., mortgage) was established earlier
    • If the highest bid is insufficient to redeem the mortgage, the property is sold free of the lease
    • Common law previously terminated a lease upon the lessee's insolvency but Section 37 of the Insolvency Act 24 of 1936 prevents automatic termination
    • The trustee can terminate the lease within three months of appointment. If not, the lease is deemed terminated after three months
    • Cancellation of the lease by the trustee results in the loss of any claim for improvements but the lessor can still sue for damages
    • A stipulation in a lease agreement terminating the lease upon the lessee's sequestration is void

    Agency

    • Agency is a tripartite relationship involving a principal, agent, and third party
    • The agent must have authority to act on behalf of the principal, which can be granted through contract, law, or other means
    • If the agent acts within their authority, the legal relationship between the principal and third party is as if the principal acted directly
    • The agent is not a party to the legal relationship, they act as a conduit
    • Authority is the power given to the agent to bind the principal, which can be granted contractually or arise from ratification, estoppel, or law

    Act of Agency

    • The act of agency refers to the juristic act performed by the agent on behalf of the principal, such as concluding a contract
    • The legal consequences of the agent's act are attributed to the principal, provided the agent acted within their authority
    • For a contract concluded by an agent to bind the principal, all contractual requirements must be met

    Types of Agency

    • Express Authority
    • Tacit Authority
    • Ostensible Authority

    Express Authority

    • Defines the limits of the agent's actions
    • The principal may allow discretion within the boundaries of express authority

    Tacit Authority

    • Granted implicitly through the principal's unspoken intentions or consensus
    • Can be determined by the "objective bystander" test: Would an onlooker naturally assume authority exists?
    • General Authority: If an agent is given general tasks or appointed to a specific role, they may also have the tacit authority to perform related tasks
    • Special Authority: When given special authority for a task, the agent is tacitly authorized to do everything needed for its execution
    • Professional Authority: Professionals like attorneys are tacitly authorized to act in ways customary for their profession unless specifically restricted

    Ostensible Authority

    • Arises when the principal's actions or words create an impression of the agent's authority to third parties, even if actual authority is absent.
    • Determined based on the impression the principal gives to third parties
    • Significantly changed by the Makate v Vodacom Ltd case
    • Court ruled that ostensible authority is not based on estoppel
    • Now seen as a form of actual authority, not merely a defense

    Formalities for Granting Authority

    • Authority can be granted contractually without formal requirements and oral authority is usually sufficient
    • Power of attorney is a formal document confirming the authority of the agent

    Key Points About Ostensible Authority After Makate v Vodacom Ltd

    • Ostensible authority is not based on estoppel
    • It only requires the element of an impression that the agent has authority
    • It is not dependent on estoppel
    • Ostensible authority is now seen as a form of actual authority
    • It is no longer just an argument to defend actions that appear unauthorized
    • It carries more weight and can be used to hold the principal liable for the agent's actions

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    KTH Exam Notes 2024 PDF

    Description

    Explore the rules surrounding unjustified enrichment and lease obligations in property law. This quiz covers key principles regarding compensation, maintenance responsibilities, and legal precedents like the Mpange case that affect lease agreements. Dive into the complexities of how permissions impact property use and compensation.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser