South Africa Case Law

Nedile Lodge (Pty) Ltd and Another v City of Tshwane Metropolitan Municipality (23/013897)

Nedile Lodge (Pty) Ltd and Another v City of Tshwane Metropolitan Municipality (23/013897) [2024] ZAGPPHC 1151 (13 November 2024)

Court

North Gauteng High Court, Pretoria

Case number

23/013897

Judge

G J Scheepers

The court found that the first applicant has an existing and future right to renew the lease agreement under clause 29, which is incorporated into each subsequent renewal as the agreement provides for renewal 'on the same terms and conditions'. The respondent failed to establish lawful cancellation or invalidity of the agreement, as no factual basis or statutory non-compliance was proven, and the respondent continued to act under the agreement for many years. The delay in raising invalidity was unreasonable and unexplained, barring the respondent from relief in reconvention. The court decline…

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• Lease Renewal
• Contract Interpretation
• Municipal Asset Transfer
• Market Related Rental
• Delay In Review
• Declaratory Relief

Shabros Property Investment (Pty) Ltd v Mobile Telephone Networks (Pty) Ltd (2507/2013)

Shabros Property Investment (Pty) Ltd v Mobile Telephone Networks (Pty) Ltd (2507/2013) [2023] ZAWCHC 118 (23 May 2023)

Court

Western Cape High Court, Cape Town

Case number

2507/2013

Judge

Baartman

The High Court found that the parties concluded a binding parking lease renewal and that the defendant repudiated it, making it liable for arrears and damages.

• Lease Renewal
• Repudiation
• Quasi Mutual Assent
• Damages For Breach
• Authority Of Agent
• Lease-renewal

Bartie N.O. and Others v Fraaikem Pharmacy (Pty) Ltd (A236/2021)

Bartie N.O. and Others v Fraaikem Pharmacy (Pty) Ltd (A236/2021) [2022] ZAWCHC 157 (17 August 2022)

Court

Western Cape High Court, Cape Town

Case number

A236/2021

Judges

Mangcu-Lockwood, J M Hlophe, M Samela

The High Court held that the trust’s conduct created a binding renewed lease with Fraaikem Pharmacy and dismissed the eviction appeal with costs.

• Lease Renewal
• Assignment Of Contract
• Waiver Of Rights
• Quasi Mutual Assent
• Eviction
• Contractual Consensus

Van Rhyn N.O and Others v Avhakholwi and Others (17887/2021)

Van Rhyn N.O and Others v Avhakholwi and Others (17887/2021) [2022] ZAGPJHC 279 (5 July 2022)

Court

South Gauteng High Court, Johannesburg

Case number

17887/2021

Judge

Manoim

The High Court held that rent under the leases must be valued on the unimproved land only, and granted declaratory relief on the lease interpretation.

• Lease Renewal
• Arbitration Clause Interpretation
• Valuation Methodology
• Declaratory Relief
• Lease-interpretation
• Renewal-rent

Greyvenstein and Others v Mbombela Golf Club (322/2021)

Greyvenstein and Others v Mbombela Golf Club (322/2021) [2021] ZAMPMBHC 62 (14 December 2021)

Court

Mbombela High Court, Mpumalanga

Case number

322/2021

Judge

B A Mashile

The Court found that Greyvenstein was in breach of the lease agreement at the time he purported to exercise the right of renewal, as evidenced by affidavits detailing poor service, inadequate stock, and persistent non-payment of rent. Clause 20.6 expressly prohibits renewal while in breach. The Golf Club was entitled to consider Greyvenstein's entire track record, not just isolated incidents, in determining whether he was the preferred tenant. The Club lawfully invoked clause 26.2, requiring valuation of the business by an independent auditor and payment prior to eviction. The sale of the Pro…

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• Lease Renewal
• Breach Of Contract
• Preferred Tenant Clause
• Sale Of Business
• Eviction
• Contractual Interpretation

Bright Idea Projects 66 (Pty) Ltd t/a All Fuels Moosa N.O and Others (4063/2018D)

Bright Idea Projects 66 (Pty) Ltd t/a All Fuels Moosa N.O and Others (4063/2018D) [2020] ZAKZDHC 47 (12 October 2020)

Court

Kwazulu-Natal High Court, Durban

Case number

4063/2018D

Judge

D Pillay

The court held that the right of pre-emption in the lease was extended upon renewal and transferred with the lease, supported by written agreements and endorsements on the title deed. The distinction between collateral and incidental terms is no longer necessary; all terms are extended with renewal. The remedy of 'stepping in' is competent both on the facts and the law, as established by Mokone and Oryx. The excipients' reliance on case law was misplaced, as none supported their grounds of exception. The fraudulent expunging of the pre-emption from the title deed and the constructive and stat…

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• Right Of Pre Emption
• Lease Renewal
• Specific Performance
• Huur Gaat Voor Koop
• Formalities In Respect Of Leases
• Fraudulent Transfer

GJ Raubenheimer (Pty) Ltd v Eloni Filling Station and Others (82043/2017)

GJ Raubenheimer (Pty) Ltd v Eloni Filling Station and Others (82043/2017) [2019] ZAGPPHC 964 (13 December 2019)

Court

North Gauteng High Court, Pretoria

Case number

82043/2017

Judge

E Bertelsmann

The Court held that the First Respondent failed to comply with the express renewal procedure set out in the lease agreement, specifically by not engaging in bona fide negotiations or approaching the President of the Institute of Estate Agents to determine the new rental. The attempt to use an outside agent did not satisfy the contractual requirements. As a result, the lease was not validly extended and the eviction order stands. Regarding the declaratory relief, the Court found that the First Respondent's claim was subject to irresoluble disputes of fact and was not liquid, making it unsuitab…

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• Lease Renewal
• Eviction
• Declaratory Relief
• Condictio Indebiti
• Motion Proceedings

Shepherd Real Estate Investments (Pty) Ltd v Roux Le Roux Motors CC (1318/2018)

Shepherd Real Estate Investments (Pty) Ltd v Roux Le Roux Motors CC (1318/2018) [2019] ZASCA 178; 2020 (2) SA 419 (SCA) (2 December 2019)

Court

Supreme Court of Appeal

Case number

1318/2018

Judges

Ponnan, Leach, Nicholls, Weiner, Dolamo

The Supreme Court of Appeal held that the renewal clause in the lease agreement, which required the rental and costs to be mutually agreed upon in writing when the right of renewal was exercised, amounted to an agreement to agree and was void for vagueness. The arbitration clause did not serve as a deadlock-breaking mechanism for determining essential terms of a prospective contract, as it only applied to disputes regarding the interpretation and implementation of the existing agreement, not the creation of new terms. The respondent's rectification defence failed because there was no common m…

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• Lease Renewal
• Void For Vagueness
• Agreement To Agree
• Rectification
• Tacit Terms

Sutherland v Smith (81018/2017)

Sutherland v Smith (81018/2017) [2019] ZAGPPHC 1076 (18 August 2019)

Court

North Gauteng High Court, Pretoria

Case number

81018/2017

Judge

Neukircher

The court held that the lease renewal option lapsed for late notice, the purchase option did not survive a new month-to-month lease, and the application was dismissed.

• Lease Renewal
• Option To Purchase
• Contractual Interpretation
• Rectification
• Periodic Tenancy
• Lease-renewal

Biprops 46 (Pty) Ltd v D S Van Huyssteen (Pty) Ltd (3685/2018)

Biprops 46 (Pty) Ltd v D S Van Huyssteen (Pty) Ltd (3685/2018) [2019] ZAMPMHC 14 (14 June 2019)

Court

Middelburg High Court, Mpumalanga

Case number

3685/2018

Judge

HF Brauckmann

Eviction application dismissed after the court found the tenant had a renewal right under the lease and that email exchanges could serve as written notice.

• Lease Renewal
• Eviction
• Factual Dispute In Motion Proceedings
• Written Notice Requirement
• Lease-renewal
• Motion-proceedings