Unit-2-Contract-of-Lease-Ch-14 - 1 THE CONTRACT OF LEASE INTRODUCTION RSA law recognizes 3 tipes of col letting and hiring of movable or immovable thing

Unit-2-Contract-of-Lease-Ch-14 - 1 THE CONTRACT OF LEASE...

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THE CONTRACT OF LEASE INTRODUCTION RSA law recognizes 3 tipes of col: - letting and hiring of movable or immovable thing - letting and hiring of services - letting and hiring of work to be done Col – on party temporarily makes available to another party the use of a thing, in return for payment. ESSENTIAL ELEMENTS OFA CONTRACT OF LEASE 1. Undertaking by lessor to give lesse the use and enjoyment of something 2. Agreement between lessor and lessee that lessee’s right to use and enjoy is temporary 3. Undertaking to pay rent, or share in fruits of property, in return for use and enjoyment which he will receive The Use and Enjoyment of a Thing o Movable/Immovable can be let o Whole/part of thing can be let o Object must be identified and identifiable o Col give lesse power to use and enjoy object. If object would be diminished/consumed/alienated, then doesn’t qualify as col. o But, ex. Cutting of corp that grows again doesn’t qualify as diminished/consumption Temporary Use and Enjoyment Temporary and not permanent Col can indicate end time or indefinite until either party chooses to end it. The Rent Lesse must pay rent and a specified amount (no exception to this rule) Rent must be certain, thus ascertainable and be able to put in words. Can agree to a formula to use to determine payable rent Can agree that a specified third party determines rent. If 3 rd party determines it at too high/low, then parties to agreement can contest in court to get a fair value. If they are still not happy, the col falls away Can agree that rent to be fixed by one of them, if determination of the rent is not dependent entirely on the unfettered will of that person. Courts also accept col for market-related rent THE FORMATION OF A CONTRACT OF LEASE Ordinary rules of contract apply, thus no formalities required for col to come into being Exceptions apply to long lease of agricultural land. Long lease not allowed unless Minister agrees to is in writing 1
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Any long lease must be registered against the title deed of the land let to be valid for mote than 10 years against creditors and onerous successors, unless creditor/successor knew about it. Long lease = longer than 10 years, or for natural life of lessee, or indefinitely renewable form time to time at the will of the lessee, or which is renewable for periods and together all amount to more than 10 years. THE RIGHTS AND DUTIES OF THE LESSOR & LESSEE Have to include essential elements of col, but can exclude consequences which would otherwise have resulted according to common law. If party to keep to contr, normal remedies for breach of contr can be followed. If breach material – can sue for performance and damages If breach non-material – can sue for damages THE DUTIES OF THE LESSOR Duty to deliver leased object to the lessee Lessor must put use and occupation of object in such a manner that lsse is able to enter into undisturbed occupation of it.
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