LEASE AGREEMENT

(FOR THE RENTAL OF BUSINESS PREMISES)

THIS CONTRACT IS LEGALLY BINDING BETWEEN LESSEE AND LESSOR. THE LESSOR HEREBY LEASES OUT PREMISES TOGETHER WITH PARKING-LOTS TO THE LESSEE.

THE LESSEE
NAME OF THE BUSINESS REGISTRATION NUMBER TYPE OF THE BUSINESS POSTAL ADDRESS OF BUSINESS TELEPHONE OF THE BUSINESS FAX OF THE BUSINESS EMAIL ADDRESS OF BUSINESS CONTACT PERSON : : : : : ______________________________________________ ______________________________________________ ______________________________________________ ______________________________________________ ______________________________________________

: ______________________________________________ : ______________________________________________ : ______________________________________________

THE LESSOR
NAME OF THE BUSINESS REGISTRATION NUMBER PHYSICAL ADDRESS OF BUSINESS POSTAL ADDRESS OF BUSINESS TELEPHONE OF BUSINESS FAX OF BUSINESS EMAIL ADDRESS OF BUSINESS CONTACT PERSON BANKING DETAILS OF BUSINESS : ______________________________________________ : ______________________________________________ : ______________________________________________ : ______________________________________________ : ______________________________________________ : : : : ______________________________________________ ______________________________________________ ______________________________________________ ______________________________________________

LEASED PREMISES
PROPERTY ADDRESS UNIT NUMBER UNIT SIZE PARKING-LOTS : _______________________________________________ : _______________________________________________ : _______________________________________________ : _______________________________________________

TERMS AND CONDITIONS

1. The lease is for a period of 12 months which commences on 1 May 2012 and is voidable at the instance of either party due to the other partys breach of contract. 2. The rent will be R___________ per month and is payable on or before the 7th of consecutive months. The rent thus escalates at the rate of 5% per day due to late payment. 3. The deposit of R___________ is payable on the commencement of the contract. 4. THE LESSEE SHALL : (a) Pay the rent within stipulated time, pay all water and electricity charges on the leased premises. (b) Use the premises only for the purpose stipulated herein and not for any other purpose. (c) On termination of the lease return the property in the manner it was found; no structural, electrical or water installation alterations without the written consent of the LESSOR. (d) Not transfer user rights to a third party. (e) Under no circumstance assign the property as collateral. 5. THE LESSOR SHALL : (a) Deliver the property for use of the LESSEE on stipulated time. (b) Be responsible for the maintenance of the exterior of the property, excluding physical damages made by the LESSEE. (c) In accordance with the agreement be entitled to examine the property at reasonable times. (d) Not disturb the use of the premises by the LESSEE. 6. BREACH BY EITHER PARTY : (a) Either the LESSEE or LESSOR may terminate the agreement only due to breach of the terms included in the contract. (b) The LESSEE may claim damages only when permitted by law-enforcement. (c) The LESSOR may claim damages due to any material breach by the LESSEE. 7. Due to the LESSEE being a private company or a trust, the signatory on behalf of such assigns to serve surety in the event of the entity being reduced to liquidation. Surety under this agreement may not be cancelled by the signatories. 8. The LESSEE has the option to renew the contract at-least 30 days before termination. This must be a written notice and delivered to the LESSOR. 9. The lease contains all terms of the agreement made by the LESSOR and the LESSEE. No additional terms may take effect unless reduced to writing and agreed upon by both parties. 2

SURETYSHIP
The undersigned do hereby assigns to serve as surety on behalf of the LESSEE in respect the lease. The surety is subject to all terms stated in the lease agreement.
SURETY 1

FULL NAME ID NUMBER PHYSICAL ADDRESS MARITAL STATUS SPOUSE FULL NAME SPOUSE ID NUMBER
SURETY 2

: : : : : :

________________________________________________ ________________________________________________ ________________________________________________ ________________________________________________ ________________________________________________ ________________________________________________

FULL NAME ID NUMBER PHYSICAL ADDRESS MARITAL STATUS SPOUSE FULL NAME SPOUSE ID NUMBER

: : : : : :

________________________________________________ ________________________________________________ ________________________________________________ ________________________________________________ ________________________________________________ ________________________________________________

CONCLUSION
The undersigned, the LESSOR and LESSEE, do hereby assign on their capacities to be contractually bound. All terms herein are applicable. Both parties have read and understood the terms included, and are obliged to perform and receive performance under the agreement.
LESSEE (ON BEHALF)

SIGNATURE FULL NAME OF SIGNATORY CAPACITY PLACE AND DATE OF SIGNATURE

WITNESS

: : : :

____________________________________________ ____________________________________________ ____________________________________________ AT_________________ON______________________

SIGNATURE FULL NAME OF WITNESS

LESSOR (ON BEHALF)

: ____________________________________________ : ____________________________________________

SIGNATURE FULL NAME OF SIGNATORY CAPACITY PLACE AND DATE OF SIGNATURE

WITNESS

: : : :

____________________________________________ ____________________________________________ ____________________________________________ AT_________________ON______________________

SIGNATURE FULL NAME OF WITNESS

: ____________________________________________ : ____________________________________________ 3

QUESTION 2 This is that part of contract law which deals with capacity to enter into a valid contract. Herein we focus on age, minority, as a factor. In South African law, people whom have not reached the age of majority (18) may not enter into legally binding agreements, and are considered to be minors. Thus minors below the age of seven have no capacity to act and those aged between seven and eighteen have limited capacity to act. In a book by Heaton, J (2008: p. 92-93), generally a minor can incur contractual liability only when assisted by his or her guardian. However a minor above the age of seven may enter into an unassisted contract if it improves his or her position without imposing duties to him or her. Where a minor enters into an unassisted contract which cedes duties unto him or her, he or she will not be held liable under the contract. The contract thus creates an obligation which may be ratified by the minors guardian or the minor upon reaching majority. The ratification binds the other party without their consent. There are statutory exceptions regarding a minors capacity to contract, firstly where the minor is 16 years of age, he or she may manage his own financial accounts in a mutual bank. Secondly, a minor of any age may get payment from deposits in the Postbank and national savings certificates. In a book by Kopel, S (1999: p. 20-22), it is possible under certain circumstances for a minor to validly contract. Firstly, the minor may apply to a Supreme Court for an order declaring him or her as major. Also by tacit emancipation, the law accepts that minors of 15 years whom works for their own living may be contractually bound. Where a minor pretends to be a major, to have the guardians consent, or to be emancipated and misleads someone to enter into a contract, he contract is void because of the minors lack of contractual capacity. But unlike in the case of an innocent minor, the fraudulent minor loses his right to restitutio in integrum, meaning he or she may not claim damages arising from the contract. The other party is allowed to reclaim enrichment of the minor. In respect of all the above stated, the parents may grant Rajen some commercial freedom to conduct his business without always having to check with them. In this instance he may be granted contractual capacity by referring to the rules of tacit emancipation. However, under no circumstances can contractual capacity be granted unto Neera, mainly because minors under the age of seven have no capacity to act as they cannot form a fair judgement especially concerning contractual obligations.

BIBLIOGRAPHY
QUESTION 1 Anon (2012) Varsity College Contract Law Module Manual. Accone T. (2009) Sample of lease agreement. Viewed 5 April 2012,
<http://www.businesstimes.co.za/lease.pdf>

Debbie (2011) Agreement of lease. Viewed 2 April 2012, http://www.1biccard.co.za/downloads. Kerr, A.J. (1996) The law of sale and lease. 2nd edition. Cape Town, LexisNexis. Nicholson S. (2008) Lease agreement. Viewed 2 April 2012, http://www.neccontract.com /necnews33.pdf

QUESTION 2
Anon (2012) Varsity College Contract Law Module Manual. Kopel, S. (1999) Student Guide to Business Law. 1st edition, 2nd impression. Heaton, J. (2008) The South African Law of Persons. 3rd edition. Durban, LexisNexis.