Ponnan JA noticed that vagence and disability could have been corrected by a deadlock termination mechanism, but there is no deadlock termination mechanism included in the lease agreement. The relevant arbitration clause of the lease agreement, which imposes certain disputes related to the interpretation and application of the agreement, does not contain any mechanism for reversing the impasse. 6.1 Compliance and strict compliance with all the conditions of the agreement by the tenant and all the funds he must have; “The right to renew is no different from the other terms of a lease agreement. A renewal clause cannot be dissociated from the lease. The parties entered into one on 1 November 2007, with effect from 1 November 2007, through a commercial property in Paarl for the purpose of operating a service station. Initially, the agreement is expected to last five years, with an extension period of “5 plus 5 years”. Initially, the rent was 18,000 per month and increased by 8% per year over the initial term. In conclusion, it cannot be properly said that tenants are holding illegally. It should be checked whether or not the lessor has the right to rent tenants whose rental contracts have ended and are not renewed during their occupation. Some of the extension conditions, such as the rent to be paid during the extended term, may be unknown at the time of the extension.
If this is the case, the provision of such rent must be clearly defined in the extension clause or a rent determination mechanism must be agreed, failing which the agreement could be considered unenforceable. The lessor must terminate in writing at least 90 days to terminate a periodic agreement (269.9 KB PDF) without a specific reason, or may terminate 60 days in writing if: The lessor must give the tenant a copy of the amended agreement and keep one for his documents. The position in our law is that an agreement is not enforceable, which means that landlords and tenants must therefore be careful when drafting a renewal clause. A common pitfall in renewing leases: be careful to avoid an “agreement” If temporary agreements are not respected, they can be rendered null and void and non-binding, making them legally unenforceable. Not really useful. For example – tenants can pay the tax, etc., BUT what about the rest of the rent for the landlord. The tenant by non-payment is always usually in violation, because there are no other clauses in the rental contracts that concern natural disasters / Covid? If a tenant decides to exercise his right to renew the lease, the result is the conclusion of a new lease. `The monthly rent to be paid during the extension period shall be market-related rent which degenerates into a market rate agreed in writing between the parties, unless an agreement is reached, the rent and the interest rate are fixed by an independent expert established by a written agreement between the parties and, in the absence of an agreement, by [a specific qualified person, z.B. a designated registered valuer]. The independent expert acts as an expert and not as an arbitrator, and his decision is final and binding on the parties. Most leases have an “option clause” that allows tenants to renew their existing leases when their lease expires.