Common Contracts
1 similar null contracts
Non renewal of month to month lease. Should i renew my lease or go month to month.July 19th, 2023
It is common for landlords and tenants to include a renewal clause in a lease agreement. Such a clause will mostly entitle a tenant to renew the term of the lease for a further term upon the same terms and conditions as the initial term. Some of the renewal terms, for example the rental payable during the extended term can be unknown at the time of renewal. If this is the case, the determination of such rental must be clearly specified in the renewal clause, or a mechanism to determine the rental must be agreed, failing which the agreement could be held as unenforceable. The position in our law is that an agreement to agree is unenforceable, which means that landlords and tenants should therefore be careful in drafting a renewal clause. Such a clause was again the subject matter of a recent Supreme Court of Appeals (SCA) case in the matter of Shepherd Real Estate Investments (Pty) Ltd v Roux Le Roux Motors CC (1318/2018) [2019] ZASCA 178 (2 December 2019). In this note we will briefly
