The law of lease

Introduction

Lease is all about the letting and hiring of immovable and movable property. Owners of property
may for a variety of reasons not want to use their property themselves. They therefore would
grant others the right to use and enjoy that property in return for rent. This grants exclusive
possession to the lessee for a specified period, subject to the terms and conditions specified in the
lease agreement. The relationship between the Landlord who is otherwise known as the Lessor
and the tenant (Lessee) is governed by principles of common law. The terms lease and lessor
shall be defined and a conclusion shall sum up this discussion.

Definition of terms

Lessor is the landlord or owner or a person who has authority over property.

Christie (1985) defined a lease as a temporary sale, the lessor corresponding to the seller while
the lessee to the buyer and the rent to the price, the subject matter of the contract being
transferred not permanently but for an agreed period. Similarly, a lease is understood as a
contract under which an owner of property, the landlord or lessor, conveys to the tenant or lessee
the exclusive right to possess property for a period of time (Mallor et-al 2010).

Additionally, Gibson (1998), indicates that, property such as buildings or any other immovable
property are assets that are commonly leased. Besides, industrial or business equipment is also
leased. Broadly put, a lease agreement is an arrangement calling for the lessee to pay -
the lessor for use of an asset. The lessee also agrees to abide by various conditions regarding
their use of the property or equipment. For example, a person leasing a car may agree that the car
will only be used for personal use.

The nature of a lease is best understood by thinking of it as a temporary sale, the lessor
corresponding to the seller, the lessee to the buyer and the rent to the price, the subject matter of
the contract being transferred not permanently but for an agreed period.

Types of lease

Basically, there are two types of leases namely

 i. Lease in Longum Tempus (Long Lease)
ii. Short Lease

Lease in Longum Tempus (Long Lease)

This is a lease of a period of more than ten years or for the lifetime of the lessee. This lease
gives a real right to the property. To obtain this right over successors of the lessor, the lease
must be in writing and registered in the Deeds Registry. Where there is such registration the
lessee’s right will prevail where the property has been alienated or where the lessor goes
insolvent. The registration serves as notice upon the successors and creditors of the lessor. Every
successor to the landlord takes the property subject to the lease. The new owner is not entitled to
terminate the lease before the period fixed expires. He simply steps into the shoes of the old
owner and must honour all the obligations there under.

Short Lease

This runs for a period of less than ten years. This lease in practice does not have to be registered.
It may be a periodic lease which runs from month to month. The contract of lease gives the
lessee a personal right only. Under the general law, the lessee has no right to remain in
occupation against successors in title to the property unless the successor has agreed to be bound
by the lease.

The lessee has some protection under the rule Huur gaat voor koop which means hire goes
before sale. This provides some security of tenure for the lessee. To benefit from this
protection, the lessee must be in occupation of the property let. Again, if a purchaser of leased
property knows at the time of purchase that the property is subject to a lease then he is bound by
the lease even if it is not registered.

ESSENTIAL ELEMENTS OF CONTRACT OF LEASE

According to Kimuda (2008), residential and business leases provide renters with legally
enforceable contracts regarding the property that they rent. Since homes and businesses are
critical parts of people's lives it is important that the lease include all of the necessary elements
of a contract of lease to provide security to the renter and the landlord. This will protect their
interests and prevent future misunderstanding that could potentially lead to litigation.
The three essential elements of a contract of lease are:-

 an undertaking by the lessor to give the lessee use and enjoyment of a thing;
 an agreement between the lessor and the lessee that the lessee’s use and enjoyment is to be
temporary and,
 an undertaking to pay rent in return for the use and enjoyment which the lessee will receive.

The contract of lease must therefore conform to the pattern of giving the use and occupation of
specified time in exchange for a specified rent. In Smith V Minister of lands and natural
Resources 1979 RLR 421, 1980(1) SA 565 the contract conformed to this pattern and the court
treated it as a lease of a mooring site for a boat, not as a contract of depositum of the boat.

Temporary use and enjoyment of property

Christie (1985), states that, the commencement of the period must be certain in a lease.
Normally, if no mention is made in the agreement, it will be deemed to start immediately. If,
however, one has only an agreement for a future lease, it will be void unless it is clear at what
date the lease is to start, either from an express term in the contract or by inference.

In the same sense, he adds that there is a requirement that the lease be of a specified period and
usually the period is specified as a fixed number of months or years or until a fixed date. He
further postulates that there is no reason why the period should not be specified as continuing
until the happening of a certain event.

Havenga et-al (2004) agrees when they say it is not a requirement for the validity of a lease that
it will run until the occurrence of an event that is bound to occur, although the time of its
occurrence is unknown.

The lease terminates at the end of the fixed period or the happening of the event without the
necessity of notice by either party: Tiopaizi v Bulawayo Municipality 1923 AD 317 235, a case
on a contract of employment decided according to principles equally applicable to contracts of
lease.

Enjoyment of a thing (property) wholly or in part

Christie (1995), avers that, the landlord also has a duty not to disturb or harass the tenant or make
it difficult for the tenant to stay at the leased premises. In other words, the landlord must
guarantee quiet enjoyment of the property by the tenant. If the landlord wishes to inspect the
property, as he is entitled to do, he should not do so without giving the tenant reasonable prior
notice for such inspection. For example, the landlord or anyone employed by him is not entitled
to enter upon the premises willy-nilly without first seeking the authority of the tenant.
Consequently, therefore, the tenant has a right not to be unduly disturbed or harassed by the
landlord.

On the same note, Gaylord (2010), denotes that exclusive possession is an essential ingredient of
a lease; without exclusive possession there can be no lease. Exclusive possession is the right to
use premises to the exclusion of all others, including the landlord himself. If the occupier has no
right to exclusive possession of the premises then his right to use the premises cannot amount to
a lease, although it may be some lesser right, such as a licence or possibly an easement.
However, the fact that a person had been given exclusive possession is not conclusive proof that
he has a lease, for it is also possible to have a licence or certain other rights in land, without
exclusive possession.

Although exclusive possession normally gives the tenant the right to exclude everyone else,
including the landlord, from the premises, the lease may reserve the right for the landlord to enter
the premises on certain occasions, for instance, to inspect the state of repair of the property.
In Appah v Parncliffe Investments Ltd [1964] 1WLR 1064, in which the ‘landlord’ had
reserved the right to come into the premises as and when he chose to empty meters and change
linen, the arrangement was held to be a license since the occupier did not have exclusive
possession.

Payment of a sum of money or sharing of fruits

The amount of rent payable will normally be the amount specified in the lease, but if the lease is
one to which the rent regulations apply this will not necessarily be so. The rent must not exceed
that fixed by a current rent order in respect of the property. In Zimbabwe a fair rent is determined
by a board established by the Ministry of local Government, Public Works and Urban
Development, under section (18) of the Statutory Instrument 32 of 2007.

DUTIES OF LANDLORD/ LESSOR

Mallor et al (2010) define a lessor as the landlord, a person who owns property and allows
another person to use it for a fee while Miller and Jentz (2010) define a lessor as the one who
transfers the right to possess and use goods under lease. Given the two definitions, it can be
deduced that a lessor is the owner of property who temporarily transfers the asset into the
possession and use to another under a contract of lease.

DUTIES AND RIGHTS OF THE LESSOR

Delivery of the property

Landlords have obligations that are imposed by law whenever property is leased. Mallor et al
(2010) submits that one of these obligations stems from the landlord’s implied warranty of
possession. The warranty guarantees the tenant’s right to possess the property for the term of the
lease. This is echoed by Khan (2013) who avers that the lessor is required to ensure the delivery
of goods to the lessee and to supply him the necessary documents. It is therefore the right of the
lessee to receive the property and have full enjoyment of it. If the lessor fails to deliver the asset
after signing a lease agreement with the lessee, the lessee has the right to sue for specific
performance with or without claim for damages (Christy 1998). In the case between Woods v
Walters (1921) AD 303, the landlord was sued for specific performance after failing to deliver
the property.

Fitness of the goods

It is the lessor’s liability to ensure the fitness and serviceability of the leased property so as to be
able to fully perform its function. Miller (2010) asserts that the lessor must ensure that the asset
leased is in a reasonably fit condition for the purpose for which the lessee is to use it.
Christie (1998) shares the same sentiments and contends that the fitness includes both externally
and internally and includes the duty to remedy all defects. Furthermore, Mallor et al (2010) add
that placing a duty on a tenant to negotiate for express warranties and to repair defects is not
feasible. For these reasons, judicial decisions in most countries now impose an implied warranty
of habitability on landlord who lease residential property but not to property leased for
commercial use.

The warranty states that the property must be safe and suitable for human habitation, that the
landlord must not only deliver a habitable dwelling at the beginning of the lease but must also
maintain the property in a habitable condition throughout the duration of the lease. The lessee
must call upon the lessor to make necessary repairs and if they refuse or fail to do so, Christie
(ibid) propositions that the lessee can first seek a Court order to go ahead with the repairs and
then recover the cost from the rent.

In the case of Lister Investments Vs Narshi, the tenant on several occasions requested the
landlord to repair broken taps in the apartment and the landlord did not cooperate. The tenant
facilitated the repairs and drew the costs from the rent when it was due. However, if the lessee
takes possession of the property whilst being aware of the defects, he is deemed to have waived
his rights to have the property repaired. Conversely, in the case of Bahadur v Phillipson 1956
and N465 (FS) 1956 (4) SA 638 a tenant who renewed a lease of a butchery knowing that it
could not be used as a butchery without certain structural alterations was entitled to cancel the
lease. This was because he was bound by the lease to use the property as butchery. Ultimately, it
is the liability of the lessee to repair if the damage is caused by his own fault or the fault of the
person within his control.

Implied Warranty of Quiet Enjoyment

The lessor makes a covenant of quiet enjoyment by leasing property. This covenant guarantees
that the tenant’s possession will not be interfered with as a result of the landlord’s act or
omission. In the absence of a strong reason, the landlord may not enter the leased property during
the term of the lease, else he be liable for trespassing.

On the same note, Christie (ibid) holds that the landlord impliedly guarantees the tenant’s
enjoyment of the property undisturbed by anyone with superior rights. The lessor must give the
lessee vaccuo possessio (undisturbed, quiet and peaceful possession and enjoyment of the
immovable property).

Therefore, the lessee has a right to peaceful possession of the property and in the event of a
breach of this right; the lessee has also the right to sue for specific performance and/or to claim
damages. In the British South Africa Company v Mike Llatos and Company 1913 AD 412,
the landlord gave a conflicting lease agreement to a third party during the existence of a lease
agreement and the Court held that the respondent had not breached the implied warranty because
he had not put the third party in possession, so the lessee’s possession had not been disturbed.
The lessee can also obtain an interdict to prevent the lessor or third party from disturbing his
peaceful enjoyment of the asset. In the case of Service investments (Pvt) Ltd v Service Press
(Pvt) Ltd (1971), building operations involving extension to part of the building which was
leased was held not to amount to an interference to the tenant’s rights of quiet enjoyment because
of the technicalities surrounding making of the lease.

Payment of rates and taxes

The landlord has the liability to pay all rates and taxes. The Christy (ibid) asserts that lessor is
obligated to pay taxes and rates to the local authority. There has often been a misconception on
this obligation where landlords often shoulder it on to tenants whose duty is to pay utilities for
which he is directly responsible. It is important to note that utilities are different from taxes and
rates. However, the exception is on where the parties agree in the lease that rates and taxes will
be paid by the lessee. The lessee has the right to be compensated if he does it on behalf of the
lessor.

The applicant charged the respondent rentals as well as rates and taxes that the applicant was
liable to pay to the local authorities. When the respondent ignored to pay for the rates and taxes,
the applicant sued him. High court Judge Davies ordered the respondent to make payment to the
applicant of the rent owing plus interest charged on the aforesaid amount at a rate of 15.5% per
annum from 4 July 2014 to 31 July 2014 and at a rate of 9% per annum from 1 August 2014 to
October 2014 thereby excluding the rates and taxes.

In summary, the obligations of the lessor are found to be the rights of the lessee or vice-versa. It
was also learnt that the law protects both parties and does not permit people to take the law into
their own hands irrespective of the circumstances.

DUTIES OF LESSEE
Havenga et-al (2004) posits that, the lessee has the following duties, duty to pay rent, duty to
maintain the property and duty to return the property undamaged.
Duty to pay rent
The obligation to pay rent is the most important duty of the lessee. Rent should be paid in the
manner prescribed on or before the due date. Rent maybe paid in arrears or in advance. With
fixed period leases, there may be a lump sum rent payable at the end of the period. If rent is not
paid, a penalty clause empowers the landlord to rescind or abrogate the contract and repossess
the premises. In Webster v Ellison 1911 AD 73, the court said, to render the tacit hypothec
(right to attach moveable property as security for rent owing) effective, it is necessary to have a
court order. Thus, failure to pay rent will also result in the lessor using their right of tacit
hypothec.
In addition, Gibson (1998) says that, if there is no express agreement the tenant is required to
make steps to make payment to the landlord on or before due date at any convenient place where
he may lawfully perform his contract, a case in point is of Venter v Venter 1949 (1) SA 768
(A) at 778 were it was held that where the agreement does not stipulate a place for payment,
the lessee should pay ‘at any convenient place where he may lawfully perform his contract . For
example, the lessee could credit the lessor’s bank account, or he could visit the lessor at his home
and pay him. In the former example, the lessee runs the risk of the bank making a mistake, and
technically, the bank’s mistake would count as a breach by the lessee.

The landlord also has the right to attach the property belonging third party (sub-tenant) provided
that the property owner has knowledge and has consented or that there is an intention that the
goods remain with the lessee indefinitely or that the landlord or lessor are not aware that the
goods belong to the third party.

To use and maintain the property in a proper manner

Kare et al (2008) posit that the lessee must use the property for the purpose for which it was
leased and any damage or destruction caused to the property is presumed to be caused by the
tenant. It is up to the tenant to prove otherwise. In Burns v D & G (Pty) Ltd 1949 (4) SA 135, B
hired a room in a building in which a number of tenants also occupied rooms. B obstructed the
communal bathroom by putting her personal clothing there, used it as a laundry and washed
dishes in it, and emptied urine and faeces into a drain which was opposite the door of a
neighbouring flat. She persisted in her conduct when asked to desist. The court held that B was
interfering materially with the ordinary comfort and convenience of other tenants in the building.
Her ejectment was granted.
Duty to return the property undamaged

Christie (1998) assets that the duty of care is commonly held without express legislation. In this
view, the tenant must return the property undamaged at the conclusion of the lease. It must in
other words be returned in the condition it was in at the beginning of the lease. The tenant is
however relieved of this duty if the property has been destroyed or stolen and the destruction of
theft is not attributable to his negligence (Manley Van Niekerk (Pty) Ltd (now Video Sound
Studios (Pty) Ltd v Assegai Safaris and Film Productions (Pty) Ltd 1977 (2) SA 416 (A)).
However, Christie (1985) says that, the landlord has no right to eject the tenant on the grounds
that she is leading an immoral life unless she is behaving unlawfully and disturbing others or
creating a nuisance or causing monetary lose, the case of Burns v D& G Ltd supports this
assertion.

In the same vein, the lessor has the right to receive the property in the same condition that he
delivered the property to the lessee except for fair wear and tear or damage to property which the
lessee can prove was not caused through his fault or that of a member of his household or third
person for whom he is responsible. If the lessee fails to return the property on the expiry of the
lease, the lessor may claim an order of ejection and damages for any loss suffered by the lessor
due to the lessee holding over.

Types of tenancies
According to Mallor et-al (2010) there are four types of tenancy established or resulting from a
lease which are tenancy for a term, periodic tenancy, tenancy at will and tenancy at suffering.
Tenancy for a term
Mallor et-al (2010) postulate that tenancy for a term is also called tenancy for years. The
landlord and tenant agree on a specific duration of the lease and fix the date on which the
tenancy will terminate. The tenant’s right to posses the property ends on the date agreed upon
without any further notice, unless the lease contains a provision permitting extension. Like in the
case of a college student who leases an apartment for the academic year ending November 10,
2014, a tenancy for a term would have been created.

Periodic tenancy
A periodic tenancy is created when the parties agree that rent will be paid in regular successive
intervals until notice to terminate is given, but do not agree on a specific lease duration. If the
tenant pays rent monthly, the tenancy is from month to month and if the tenant pays yearly, as is
sometimes done under agricultural leases, the tenancy is from year to year. To terminate a
periodic tenancy, either party must give advance notice to the other. The precise amount of
notice required is often defined by state statutes (Mallor ibid).
Tenancy at will
A Mallor (ibid) posit, a tenant at will occurs when property is leased for an indefinite period of
time and either party may choose to conclude the tenancy at any time. Generally tenancies at will
involve situations in which the tenant either does not pay rent or does not pay it at regular
intervals. Although the name indicates that it is terminable at the will of either party , most states
require that the landlord give reasonable advance notice to the tenant before exercising the
right to terminate the tenancy.
Tenancy at sufferance
This occurs when a tenant remains in possession of the property or holds over after the lease has
expired. In this situation, the landlord has two options of either, treating the holdover tenant as a
trespasser and bringing an action to eject him; or continuing to treat him as a tenant and
collecting rent from him. Until the landlord makes his or her election, the tenant is a tenant at
sufferance. Suppose that Templeton has leased an apartment for one year from Larson, at the
end of the year Templeton hold over and does not move out he is a tenant at sufferance (Mallor
et-al 2010).
FORMATION OF A CONTRACT OF LEASE
According to Christie (1998) no formalities are required for the formulation of a lease. Just like
any other contract, the lease may be made in writing, orally, tacitly or by a combination of these
methods. Thus a contract of lease, including a lease of land may be entered into informally. In
South African Law, however, a long lease of agricultural land is prohibited by the Subdivision of
Agricultural Land Act 70 of 1970.
In Zimbabwe unlike in South Africa, there’s no legislation governing long leases over ten years
so they are governed by the common law as summarised by Gubbay.J in Shell Rhodesia (Pvt)
Ltd V Eliason 1979, RLR 211, 216, 1979(3) SA 915918 :

“A long lease to be binding upon onerous successors and creditors of the lessor must be
registered against the title of the leased property, unless the successor has had notice of the
lease. An unregistered long lease is always binding as between the immediate parties thereto and
upon gratuitous successors of the lessor, and is binding upon a purchaser who had no notice of
the lease, for a period of not more than ten years, if the lessee was in occupation of the property
when it was sold.”
Mallor et al (2010) also submit that a lease contract may be made in any manner sufficient to
show agreement, including conduct by both parties which recognizes the existence of a lease
contract.

Offer and Acceptance

Mallor et al (2010) aver that unless otherwise unambiguously indicated by the language or
circumstances, an offer to make a lease contract must be construed as inviting acceptance in any
manner and by any medium reasonable in the circumstances.
Leases can also be formed by conduct (actions). For example, if a tenant pays on a regular basis
and the money is accepted by the lessor on the shared understanding that the payment is being
paid in return for the tenant being allowed to live in the rented property, then there is a lease. No
words need be spoken or written down for there to be a legal agreement.

Subletting
This is where the lessee lets property which is hired. The lessee becomes a sort of lessor and
creates another lessee. The lease between the original lessor and lessee is not affected by a
sublease, and the original lessor and lessee remain bound to each other. The sublease does not
create a contractual relationship between the sub lessee and the original lessor. The lessor cannot
claim rent from the sub lessee. Payment of rent under the original lease remains the
responsibility of the lessee.

BREACH OF A LEASE

Christie (1998) describes the doctrine breach as a failure to undertake a certain obligation that
concludes an obligation. However Yardney (2018) postulates that a breach of the tenancy
agreement is when the property manager/owner or tenant fails to comply with any part of the
agreement.

Types of lease Breaches

Tenant breaches under a commercial lease such as an office, warehouse, retail, or industrial lease
are largely governed by the specific terms and conditions of the lease agreement.  Typical tenant
breaches may include monetary breaches, such as failure to pay rent or other charges, and non-
monetary breaches such as failing to open and operate, using the premises for purposes restricted
under the lease, filing bankruptcy, conducting liquidation sales, incurring mechanics liens on the
property, and failing to return the premises in the condition required.  The type of lease and
breach will determine landlord’s best course of action (Yardney 2018)

Remedies for a Breach

According to Yardney (ibid) for monetary breaches, it is important that a commercial lease
provides specifically that a landlord can recover future rent even after possession by tenant is
terminated, and that landlord can accelerate the rent and recover the difference plus reasonable
costs after re-renting the premises.  Unless these terms are specifically contained in a lease, in
many states, landlord’s right to collect rent after possession has terminated and accelerate rent
may be limited by law.

For non-monetary breaches, landlord should carefully consider whether tenant will have the right
under the lease to cure certain breaches, such as failure to operate and use restrictions.  Often,
tenant is not granted a right to cure for failure to open.
 
It may be advisable to also add a provision that tenant is required to pay an amount as additional
rent within five or ten days of demand for each day that tenant fails to open or operate.  If the
tenant does not pay such additional rent it will be in monetary default as well, Yardney (2018)

Termination or Cancellation of a Lease

Leases being contracts are terminated in the manner that contracts are terminated. The most
usual is by performance. The landlord’s duty to perform by giving occupation is completed when
the period of the lease ends and the tenant’s duty is completed when he has paid the rent and
returned the property undamaged. In a case of a lease for an indefinite period termination is
usually by notice given by either the landlord or tenant. The notice must be reasonable notice
(Tiopaizi v Bulawayo Municipality (supra)). What is reasonable depends, as always on the
facts of the case. Once the period of notice has expired and the tenant has fulfilled his
obligations, the lease is terminated by performance (Gibson 1998).
Lease agreement cancellations can be terminated before the termination date and cancelled due
to a breach of lease. Both terminations are subject to the Rental Housing Act (1999) and the
Consumer Protection Act (2008), and both fall under the South African common law.

The following circumstances are events that can terminate a lease and/or tenancy contract: 
Expiration of Lease or Tenancy Contract
A lease or tenancy contract can be terminated after the expiration of the lease/tenancy period and
whereby the lessee/occupant of the leased/tenanted property decides not to renew his/her
lease/tenancy with the property owner/lessor. There are so many reasons why a lessee/tenant
may not want to renew their tenancy/lease contract after its expiration, some of which they may
voluntarily or involuntarily explain to the property owner/lessor. Where this kind of event arises,
the lease/tenancy contract between the property owner/lessor and the tenant/occupant expressly
comes to an end, (Gibson 1998)

Breach of Lease/Tenancy Conditions/Terms

In the course of preparing a lease/tenancy agreement/contract, there are some certain duties and
obligations to be observed and adhered to by both the landlord/lessor and tenant/lessee during the
period of the lease/tenancy contract. A breach of any of these lease/tenancy agreement conditions
on either part of the landlord/lessor or tenant/lessee may warrant the lease/tenancy contract been
terminated. This is why it is always important for both landlord/lessor and tenant/lessee in any
lease/tenancy contractual relationship to always observe their obligations which serves as a
condition for the lease/tenancy relationship they enjoys if they don’t want such to be terminated,
Gibson (1998)
Destruction of the Leased/Tenanted Property
There are series of destructive events that can terminate a lease/tenancy contract between a
landlord/lessor and tenant/lessee. Some of these destructive events are; Fire Outbreak, Acts of
war, Building collapse, and Force Majeure (landslide, ocean surge, earthquake, flooding,
hurricane etc). A leased/tenanted contract will be terminated in a situation where any of these
destructive events takes place. While some of these destructive events are man-made, others may
be uncontrollable by human effort, (Gibson ibid) 
Foreclosure of the Leased/Tenanted property through Mortgage.
According to Gibson (ibid) another circumstance which can terminate a lease contract between a
lessor and lessee is a situation whereby the lessor used the leased property as a
collateral/instrument to secure a loan for mortgage purpose from a mortgage institution but
defaults in paying back the loan at the stipulated period thereby forfeiting the leased/tenanted
property to the mortgage institution through foreclosure. Whenever a leased property is
foreclosed due to non-payment of loan received from a mortgage institution by the landlord who
has used the subject property as collateral for a loan advancement, the lease contract currently
existing between him/herself and the tenant will be terminated because the mortgage institution
will want to take possession of the leased property used as collateral to secure the loan
advancement through foreclosure.

Compulsory Acquisition of the Leased/Tenanted Property by Government

Gibson (1998) posits that Government can acquire different classes of land and landed properties
for various purposes which will be of great benefit to the generality of the citizens. If during the
course of carrying out a compulsory acquisition exercise, some certain leased properties are
affected, the consequence of this is that the lease contract between the landlord/lessor and
tenant/lessee will be terminated. The lessor of the leased property may be compensated by
government before, during or after completion of the compulsory acquisition exercise but this
will not have any changes to the terminated lease contract.

Court Order
This is another event that can terminate a lease contract between a landlord and tenant. In the
case of a land dispute between two or more parties laying claims to the true ownership of a
particular lot/portion of land where a leased property is lying and situates. If the party with
whom the court grants its ruling in his/her favour is not the lessor of the leased property, then the
lease contract will be terminated as the court will grant an order of possession to the party who
won the case in court to take over the leased/tenanted property, Gibson (ibid)

Summary, to this, the landlord may only cancel the lease if the tenant is in breach and does not
remedy the breach within the specified time. The tenant may legally cancel the lease at any time,
but the termination of the lease agreement before its expiry will incur cancellation penalties. The
landlord has the right to charge a reasonable cancellation fee as per the lease signed, based on the
remaining lease period before expiry.

Conclusion
This paper has discussed the essential elements, formation, termination obligations and rights of
the lessee and lessor in a contract of lease. It has been shown that, like any other contract, a
contract of lease may invite punishment or penalties on either party where the contract is
breached, within the confines of the law.
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