CJ Jouhal
LinkedIn | Twitter | Facebook | About.Me

An Entrepreneur that leverages technology to grow and enhance a business. A Technologist that understands business and entrpreneurship and makes technology facilitate the business model.

These are my ramblings about business, technology, startups and whatever else.

Rental Agreement Contract Renewal

As of November 1, 2007, the parties entered into a lease for a commercial property in Paarl to operate the operations of a gas station. The agreement is expected to be for an initial term of five years, with a period of “5 years plus 5 years”. Initially, the rent was R18,000 per month and increased by 8% per year over the initial period. “The monthly rent payable during the extension period is a market-related rent, as agreed in writing between the parties, provided that the agreement, rent and subsequent escalation rate are not set by an independent expert. This independent expert is appointed by written agreement between the parties and, if not, by [the Chief Executive Officer of the South African Institute of Valuers]. The independent expert acts as an expert and not as an arbitrator, and his decision is final and binding on the parties. The lessor mentioned in the first article must sign the “Lessor`s Signature” line to approve and conclude the renewal contract defined above. Once this task is completed, he or she should enter the next “date” line and then document the month, day and year he or she signed the paperwork. Ponnan JA, who relied on Plascon-Evans, said the tenant`s allegations were so far-fetched or patently untenable that a court would have the right to dismiss them solely on the documents. In addition, Ponnan CITE THAT “a person who signs a contractual document means consent to the contents of the document, and if they later prove unfavourably, there is no one who is guilty except himself.” If you`re wondering whether or not you want to renew an ongoing lease, check out our list of pros and cons and our tips on managing lease renewals. « …

is a provision that can be found, if at all, with the tacit intent of the parties … The Court does not easily introduce a tacit term. It cannot enter into contracts for individuals; nor can it complete the agreement of the parties simply because it might be reasonable. Before it can imply an unspoken clause, the Court of Justice must necessarily be satisfied, by reasonably and commercially considering the contractual terms and admissible evidence of the circumstances, that the parties intend to enter into contracts on the basis of the proposed clause.” First, it serves as a reminder that the courts do not interfere in the conduct of an agreement and always respect the discretion of the parties to approve or not consent to it. In the words of Chief Justice Innes, “it is a solid principle of the right that a man, when he signs a contract, is supposed to be bound by the ordinary meaning and effect of the words that appear above his signature.” In essence, the SCA had to determine whether the agreement was binding. Both parties had argued persuasively as to why the court should rule in their favour. The lessor disputed that the lease was an “approval agreement” and was not applicable to indeterminacy. In addition, the owner argued that the compromise clause in the lease was not a deadlock-break mechanism. It is customary for the landlord and tenant to insert a renewal clause into a tenancy agreement.

Such a clause generally allows a tenant to extend the term of the tenancy by an additional period on the same terms as the original term. A tenancy agreement is a formal and legal contract between two parties, in which their lease has just expired or is about to expire, but wishes to extend the use of the property rented by the tenant for an additional period.

Be Sociable, Share!

Comments are closed.

cjjouhal’s twitter