South Africa Case Law

South African Local Authorities Pension Fund v SOS Media Productions (Pty) Ltd t/a Black Door (10870/2022)

South African Local Authorities Pension Fund v SOS Media Productions (Pty) Ltd t/a Black Door (10870/2022) [2023] ZAGPJHC 1285 (9 November 2023)

Court

South Gauteng High Court, Johannesburg

Case number

10870/2022

Judge

Strijdom

The court found that substantial factual disputes exist between the parties regarding the validity of the renewal notice and the respondent's continued occupation of the premises. The applicant failed to discharge its onus to show a very strong case against referral to arbitration. The lease agreement contains a valid arbitration clause, and the respondent properly raised a preliminary point in limine for referral to arbitration. The court exercised its discretion to stay the proceedings pending arbitration, as required by section 6(2) of the Arbitration Act and relevant case law. The applica…

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• Arbitration Act Stay Of Proceedings
• Commercial Lease Dispute
• Option To Renew
• Arbitration Clause Enforcement

Hugo, Kirsten & Kirsten (Pty) Ltd v Collotype Labels (Pty) Ltd (323/2019)

Hugo, Kirsten & Kirsten (Pty) Ltd v Collotype Labels (Pty) Ltd (323/2019) [2020] ZASCA 21 (25 March 2020)

Court

Supreme Court of Appeal

Case number

323/2019

Judges

Cachalia, Zondi, Plasket, Dlodlo, Mbatha

The court held that a lease clause requiring negotiation of a new lease was void, but the invalid clause did not invalidate the fixed-term lease itself.

• Lease Agreement
• Option To Renew
• Severability Of Contract
• Void For Vagueness
• Lease-agreement
• Option-to-renew

Reclamation Group (Pty) Ltd v Rustenburg Chemicals (Pty) Ltd (31693/19)

Reclamation Group (Pty) Ltd v Rustenburg Chemicals (Pty) Ltd (31693/19) [2020] ZAGPJHC 127 (24 March 2020)

Court

South Gauteng High Court, Johannesburg

Case number

31693/19

Judge

Eichner-Visser

The court found that the sub-lease agreement commenced on 22 April 2016 and terminated on 21 April 2019. The respondent failed to exercise the renewal option in writing at least three months prior to termination, as required by the agreement. The only correspondence potentially constituting notice was the email of 15 October 2018, which did not unequivocally exercise the option but rather proposed a new lease with different terms. No new lease agreement was concluded after 31 July 2019 due to lack of consensus. The respondent's continued occupation after expiry of the sub-lease created a taci…

Source excerpt

• Sub Lease Agreement
• Option To Renew
• Tacit Lease
• Eviction
• Consensus In Contract
• Enrichment Lien

Friedshelf 1612 (Pty) Ltd v McConnell (2343/2018)

Friedshelf 1612 (Pty) Ltd v McConnell (2343/2018) [2018] ZAECGHC 119 (20 November 2018)

Court

Eastern Cape High Court, Grahamstown

Case number

2343/2018

Judge

J.D. Pickering

The court held that the lease agreement granted the respondent a right to renew, but this right was contingent on the parties reaching agreement on the rental before the cut-off date. No agreement was reached, and the lease contained no deadlock-breaking mechanism to resolve the impasse. The applicant was not obliged to negotiate in good faith or propose a rental in the absence of such a mechanism. The respondent's attempt to renew the lease by proposing an 8% escalation did not satisfy the contractual requirements, as the agreement expressly required consensus on the rental. The authorities…

Source excerpt

• Commercial Lease Renewal
• Option To Renew
• Deadlock Breaking Mechanism
• Contractual Interpretation

Roazar CC v Falls Supermarket CC (12328/2016)

Roazar CC v Falls Supermarket CC (12328/2016) [2016] ZAGPJHC 393; [2017] 2 All SA 665 (GJ) (23 December 2016)

Court

South Gauteng High Court, Johannesburg

Case number

12328/2016

Judge

Klaaren

The court dismissed an eviction application, holding that the tenant had a valid option to renew and that renewal negotiations in good faith were enforceable.

• Lease Renewal
• Eviction
• Good Faith Negotiation
• Illegal Contracts
• Option To Renew
• Lease-renewal

Marble Gold 156 (Pty) Ltd v Seven Days Trading 13 (Pty) Ltd (48640/2010)

Marble Gold 156 (Pty) Ltd v Seven Days Trading 13 (Pty) Ltd (48640/2010) [2011] ZAGPJHC 63 (22 February 2011)

Court

South Gauteng High Court, Johannesburg

Case number

48640/2010

Judge

C J Claassen

The court granted eviction where a lease renewal option required agreement on rental, but no new rental was reached after the original term expired.

• Eviction
• Lease Renewal
• Option To Renew
• Monthly Tenancy
• Failure To Agree Rental
• Lease-renewal

New Life Communal Property Association v Draigri Boerdery Bpk (1616/2007)

New Life Communal Property Association v Draigri Boerdery Bpk (1616/2007) [2007] ZAECHC 101 (22 November 2007)

Court

High Courts - Eastern Cape

Case number

1616/2007

Judge

Froneman

High Court confirmed attachment and eviction after finding rental arrears and holding the lease-renewal option void for vagueness.

• Landlord Hypothec
• Eviction
• Lease Agreement
• Option To Renew
• Authority To Institute Proceedings
• Landlord-hypothec

Swartzberg v Leon Swartzberg & Company (Pty) Ltd. (373/95)

Swartzberg v Leon Swartzberg & Company (Pty) Ltd. (373/95) [1997] ZASCA 10 (14 March 1997)

Court

Supreme Court of Appeal

Case number

373/95

Judges

Mahomed, E M Grosskopf, Nienaber, Howie, Streicher

The court held that a lease was rectifiable where the written terms failed to reflect the parties’ common intention that two adjoining leases end together.

• Rectification Of Contract
• Lease Agreement
• Common Error
• Option To Renew
• Contractual Intention
• Rectification-of-contract

Letaba Sawmills (Edms) Bpk. v Majovi (Edms) Bpk. (225/1991)

Letaba Sawmills (Edms) Bpk. v Majovi (Edms) Bpk. (225/1991) [1992] ZASCA 195; 1993 (1) SA 768 (AD); [1993] 1 All SA 359 (A) (19 November 1992)

Court

Supreme Court of Appeal

Case number

225/1991

Judges

Botha, Vivier, Eksteen, Van den Heever, Van Coller

The court held that a lease renewal option with negotiation and arbitration over rental was sufficiently certain, but the valid option rendered the lease invalid under the land-subdivision statute.

• Long Term Lease
• Option To Renew
• Ministerial Consent
• Contractual Uncertainty
• Arbitration Clause
• Lease-renewal-option