Beaux Lane SA Properties (Pty) Ltd v Tresso Trading 193 (Pty) Ltd t/a Leisurefurn (25548/2008) [2012] ZAGPJHC 201 (25 October 2012)

Beaux Lane SA Properties (Pty) Ltd v Tresso Trading 193 (Pty) Ltd t/a Leisurefurn (25548/2008) [2012] ZAGPJHC 201 (25 October 2012)

The court found that the oral lease agreement included a rental of R2000 per day plus VAT, a two-week notice period, and a turnover clause requiring the defendant to pay 2% of its turnover inclusive of VAT. The evidence, including contemporaneous notes and correspondence, supported the plaintiff's version of the agreement. The defendant did not dispute or seek amendment of the terms communicated by the plaintiff. The defendant vacated the premises without proper notice, and the plaintiff became aware of this on 5 May 2008, which was treated as effective notice, terminating the agreement on 19 May 2008. The defendant was held liable for rental from 1 April to 19 May 2008, for turnover...

Citation
[2012] ZAGPJHC 201
Parties
Plaintiff: Beaux Lane SA Properties (Pty) Ltd; Defendant: Tresso Trading 193 (Pty) Ltd t/a Leisurefurn
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
25 October 2012
Case Number
25548/2008
Procedural Posture
Civil Trial / Final Judgment
Outcome
Judgment for the plaintiff; defendant held liable for rental, turnover payments, and costs.
Judges
N. P. Willis
Legal Topics
Oral Lease Agreement, Rental Dispute, Turnover Clause, Mitigation of Loss
Commercial and Corporate Land and Property Oral Lease Agreement Rental Dispute Turnover Clause Mitigation of Loss

Case Brief

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Parties

Beaux Lane SA Properties (Pty) Ltd

Plaintiff

Tresso Trading 193 (Pty) Ltd t/a Leisurefurn

Defendant

Procedural Posture

Civil Trial / Final Judgment

Legal Issues

  1. 1 What were the precise terms of the oral lease agreement between the parties.
  2. 2 Is the defendant liable for rental and turnover payments for the period after March 2008.
  3. 3 Was the plaintiff entitled to an account and payment based on the turnover clause.

Ratio Decidendi

The court found that the oral lease agreement included a rental of R2000 per day plus VAT, a two-week notice period, and a turnover clause requiring the defendant to pay 2% of its turnover inclusive of VAT. The evidence, including contemporaneous notes and correspondence, supported the plaintiff's version of the agreement. The defendant did not dispute or seek amendment of the terms communicated by the plaintiff. The defendant vacated the premises without proper notice, and the plaintiff became aware of this on 5 May 2008, which was treated as effective notice, terminating the agreement on 19 May 2008. The defendant was held liable for rental from 1 April to 19 May 2008, for turnover...

Court Disposition

Judgment for the plaintiff; defendant held liable for rental, turnover payments, and costs.

Orders

  • The defendant is to pay the plaintiff the sum of R98,000 plus VAT together with interest at 15.5% per annum from 15 August 2008 to date of payment.
  • The defendant is to render to the plaintiff a full account, supported by vouchers, of the turnover generated at the premises at 22 White Hills Close, Fourways for the period from 1 March 2008 to 19 May 2008.