KTH Exam NotesCHAPTER 16 – FORMATION OF THE CONTRACT OF LEASEIntroductionThe relationship btw lessors and lessees iro lease contracts is governed by the Rental Housing Act (RHA).The RHA gives effect S26 of the Consti, the right to adequate housing.The provisions of the RHA are enforced by the Rental Housing Tribunals. A lessee or lessor or any interestedpersons may lodge a complaint concerning an unfair practice to the tribunal.S1 of RHA,Unfair practice= any act or omission by a landlord or tenant in contravention of the RHA or apractice prescribed as a practice unreasonably prejudicing the rights or interests of a tenant or landlord.If,prima facie, a dispute concerning an unfair practice exists, the tribunal must enter the particulars of thedwelling into the complaint register, then the tribunal must investigate whether the dispute relates to anunfair practice.If tribunal believes that the dispute can be resolved through mediation, a mediator is appointed. If thedispute is not suitable for mediation or the mediation process is unsuccessful, the tribunal will conduct ahearing and make a fair and just ruling.If an unfair practice exists, the tribunal may make a ruling to put an end to the unfair practice. Rulingsinclude: to discontinue overcrowding, unacceptable living conditions, exploitative rentals or lack ofmaintenance. Failure to comply w the ruling may result in criminal action, a fine may be paid orimprisonment not exceeding 2 years.Maphango Case:Facts: a number of lessees whose lease agreement had been terminated on notice by their lessor arguedthat the terminations constituted an unfair practice ito the RHA. Argument was based on fact that the RHApermits a lessor to terminate a lease as long as the ground for termination is specified in the lease ctr anddoes not constitute an unfair practice.SCA: dismissed the argument. Said, unacceptable conduct by the landlord on an isolated occasion could notconstitute a practice, a practice is incessant (continuing) and systematic conduct by the landlord which isoppressive/unfair.CC: the argument by the lessees should have succeeded. To determine1.whether the termination of the leases in question constituted an unfair practice and2.what a just and fair ruling would be under the circumstanceswas a matter to be decided by the Rental Housing Tribunals.Therefore, the courta quoand the SCA underassessed the power of the RHA which has created a powerfulsystem of for managing disputes btw landlords and tenants.Furthermore, the CC said an unfair practice can be a single act by a lessor.Leave to appeal was granted however the matter was referred to the Tribunal for an appropriate decisionas contemplated by the RHAThe RHA is not applicable where a lease agreement is entered into for other purposes, their than housing.
