Benlou Properties (Pty) Ltd v Vector Graphics (Pty) Ltd (185/1991)
Benlou Properties (Pty) Ltd v Vector Graphics (Pty) Ltd (185/1991) [1992] ZASCA 158; 1993 (1) SA 179 (AD); [1993] 1 All SA 207 (A) (18 September 1992)
The Supreme Court of Appeal held that the lease was not invalid merely because the landlord had a measure of discretion in determining components of the rent. The court distinguished between a pure potestative condition, which is invalid, and a mixed condition, which is permissible if the determination does not depend entirely on the unfettered will of one party. The appellant's discretion was limited by objective criteria: only a defined share of increased expenditure actually incurred with third parties could be recovered, and liability arose only if charges for specific listed items increa…
Source excerpt
- Lease Validity
- Certainty Of Rent
- Severability Of Contract
- Potestative Conditions