Chapter 16 Lease Contract.pdf - Section E Chapter 16 130 CHAPTER 16 DUTIES OF THE LESSOR AND LESSEE OBJECTIVES After completing this chapter you should

Chapter 16 Lease Contract.pdf - Section E Chapter 16 130...

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Section E Chapter 16 130 CHAPTER 16 DUTIES OF THE LESSOR AND LESSEE OBJECTIVES After completing this chapter you should be able to: Name and explain the duties of the lessor and the lessee Discuss the land’s tacit hypothec. Explain the application of Huur gaat voor koop rule Identify and discuss the instances where the lessee will have a claim for compensation for improvements to the property Contents Page 1. Introduction 130 2. The duties of the lessor 131-133 3. The duties of the lessee 133-135 4. The landlord’s tacit hypothec 135-136 5. Rights of the lessee 136-138 6. The Hire Goes Before Sale 138-139 7. Improvements to property 139-140 1. INTRODUCTION With every contract comes certain rights and duties and a lease contract is no exception. In a lease contract, certain rights and duties that bind the lessor and lessee respectively are automatically incorporated into the contract. These implied terms ( naturalia ) will always apply to a contract of lease, unless the parties to the particular contract expressly exclude them. Failure by either party to fulfill his/her duties will amount to breach of contract, and the aggrieved party will have the ordinary remedies for breach of contract. If the breach is material, the aggrieved party may elect to cancel the contract and claim damages, or he/she may apply for an order for specific performance and claim such damages suffered. It must be remembered, however, that specific performance is a discretionary remedy and might not be granted in all instances.
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Section E Chapter 16 131 If the breach is not material, he/she may claim damages. Damages are calculated according to the normal rules applicable to contractual damages. 2. THE LESSOR’S DUTIES IN A LEASE CONTRACT The duties of the lessor are as follows: Delivery Maintenance Undisturbed use and enjoyment Rates/Taxes 2.1. The duty to deliver the thing to the lessee. The lessor’s primary duty is to deliver the use and enjoyment of the thing to the lessee. The term delivery in this context has the same meaning as in a contract of purchase and sale, i.e. the lessor has to place the thing at the disposal of the lessee in such a manner that the latter is able to take free and undisturbed possession of it. If it is a long-term lease the duty to deliver includes the duty to co-operate in the registration of the lease should the lessee want registration. The property delivered must be the property agreed upon, as well as all articles and accessories without which the thing cannot be properly used, for example the keys of a house. At the time of delivery the property must be in a proper state of repair and in a condition reasonably fit for the purpose for which it was let, if it is let for a specific purpose.
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