Contract of Employment



CLA 1503 – UNISA - Assignment answers

Chapter 14 - LEASES

Question 1

A leases his farm to B for 12 years in exchange for 10% of the crop produced each season. A & B sign a written lease agreement, but the lease is not registered against the farms title deed.

Which one of the following statements is correct?

1 The contract of lease is invalid because the rent is not a determinable amount in money.

2 The contract of lease is invalid because a long lease must be registered against the title deed of the property in order to be binding.

3 The contract of lease is valid because rent consists of a share of the fruit of the farm amounts to valid rent.

4 The contract of lease is invalid because the lease period exceeds ten years.

Question 2

A rents a house from B for a year. After 3 months, X offers to buy the house. X knows about the existence of the contract of lease. B sells the house to X.

Which one of the following statements is incorrect?

1 X has to compensate A for improvements he has made to the house during the first three months of the lease, because improvements are to X’s benefit as the owner. (see pg 175)

2. If the property on which B’s house stands was expropriated by the state and not sold, A could not have held the state bound to the lease.

3 X would be bound to the lease only if X had knowledge or deemed knowledge of the existence of the lease when she concluded the contract of sale.

4 Although X did not conclude a contract of lease with A, X may not evict him but must abide by the lease which B concluded with A.

Question 3

Which of the following statements is correct?

1. If a property already leased, is sublet, a contract arises between the original lessor and the sublessee.

2. A contract of lease is automatically terminated by the death of the lessor or the lessee.

3. The purchaser of property in respect of which a contract of lease is in existence, does not assume any obligation owing by the lessor to the lessee, that arose prior to the date of sale.

4. The lessee who affected repairs on a defective object, has to prove, when claiming reduction of the rent, that repairs were affected after the lessor failed to respond to a demand to have them done.

Question 4

Lebo stays in a house which he leases from T. He sublets part of his house to Lesego. The house is only 1 km away from the house where Mary, Lebo’s girlfriend , stays. She likes visiting and sleeping over weekends. Lebo used all the money he had, including the rent Lesego paid him, to spoil Mary with expensive gifts on Valentines day. He even gave her some of his belongings, which heintends replacing in the near future. It is the end of the month and Lebo is unable to pay his rent.

Which of the following statements is correct?

1. T may attach all movable property on the leased premises, including Lesego’s property.

2. T may attach all movable property which belongs to Lebo, including those items that he gave Mary

3. T may attach all Lebo’s movable property present on the leased premises at the time that the rent is in arrears.

4. T may attach all movable property belonging to Lebo, Lesego and Mary.

Question 5 (pg 173)

B rents an office from City Properties. The Gauteng Gov decides to expropriate the property in order to tear down the building and build a road. B writes a letter to the Gateng Gov. to inform them of the existing contract of lease. The Gov. go ahead with the expropriation and B refuses to evacuate the offices.

Indicate the advice you would give Barry:

1. The gov is bound to the contract of lease, because of the maxim “huur gaat voor koop”

2. The gov is bound to the contract of lease because it is aware of the contract of lease.

3. The gov is not bound to the contract of lease because the maxim “huur gaat voor koop” applies only to long leases of immovable property.

4. The gov is not bound to the contract of lease, because the maxim “huur gaat voor koop” applies only where there is a succession of rights.

Question 6

It is the end of year 2005 and B must vacate the flat which he has been renting from T Estates for the past 2 years ito a lease agreement. The kitchen has burnt out. B alleges that the damage was caused by lightning. The damage was actually caused by an electrical fault in B’s fridge which B knew about, but ignored, T estates wants B to repair the flat.

Which of the following statements is correct?

1. T estates is entitled to have B’s movables attached

2. B is obliged to repair the damage

3. The damage must be repaired by T estates

4. B may affect the repairs and claim damages from T Estates.

Question 7

P leases his house to A at R 500 pm. Including water & lights. The power supply to the house is cut off because P has not paid the account for water & lights. A refuses to pay rent at the end of the month as he and P had agreed. A alleges that he has suffered damages because all the meat in his freezer has been spoiled.

Which of the following statements is incorrect?

1. A is liable for the rent until he vacates the property.

2. A is entitled to claim a reduction in the rent

3. P is liable for the damages suffered by A when the meat was spoiled.

4. P is entitled to summarily sell any movable property in the flat which belongs to A in order to recover the outstanding rent.

Question 8

The maxim “ Huur gaat voor Koop” refers to the principle that a person who:

1. Buys immovable property is bound to any short-term contract of lease existing in respect of the property at the time of its alienation, and of which he was aware.

2. lets immovable property, may not sell that property before the lease is expired.

3. receives immovable property ito a contract of exchange, is bound to any long lease existing iro the property.

4. expropriates immovable property, is bound to any contract of lease existing iro the property.

5 sells movable property, is bound to any contract of lease existing iro of thep property and of which he was aware.

Question 9

P rents a house from S for R 1000pm. The roof of the main bedroom starts to leak when it rains. P is now obliged to sleep in another bedroom.

Which one of the following statements is correct?

1. P is entitled to refuse to pay rent.

2. If S refuses to repair the roof, P is entitled to have the roof repaired and to claim a reduction in the rent.

3. the defect is not material and S is therefore not obliged to have the roof repaired.

4. S is entitled to maintenance of the house in a fit condition and P is therefore obliged to have the roof repaired.

Question 10

Tommy wishes to lease one of his farms to his son, Tambo. Tambo intends making substantial improvements to the farm.

Which of the following terms may be included in the contract of lease?

1. A term which gives Tambo permanent use and enjoyment of the farm. (temporary)

2. A term stipulating that Tambo is not obliged to pay rent.

3. A term stipulating that Tambo will pay his father a determined share of the yield of the mealie harvest as rent.

4. A term which denies Tommy the right to prescribe to Tambo what he may do on the farm.

Question 11

Leslie leases a flat from Kagiso. Leslie falls into arrears with the payment of the rent.

Which one of the following statements is correct?

1. Kagiso does not have a tacit hyphotec over a television set on the leased premises, which is a television set that Leslie took from his grandmother’s house without her knowledge. (permanent with permission)

2. Kagiso has a tacit hyphotec over a video recorder which Leslie bought, although the seller has informed Kagiso that Leslie has not paid the full purchase price.

3 Kagiso has a tacit hyphotec over furniture belonging to Leslie, which Leslie removed from the premises , when Leslie was in arrears with the rent .

4. If Leslie pays the amount outstanding in respect of rental, the hyphotec remains operative in order to secure future rental.

Question 12

S decides to lease one of his tobacco farms to T.

Which of the following terms may not be included in the contract of lease?

1. T may rent the farm for 50 years

2. S gives T free use of the farm. (Must pay)

3. T has to give S 20% of the yield of the harvest as compensation (may)

4. T has to pay S a rent calculated at 20% of the profit of T’s butchery in town. (= money)

Question 13

Indicate the incorrect statement..

1. The maxim “huur gaat voor koop” arose from considerations of equity (Pg 182)

2. The maxim “huur gaat voor koop pertains to the lease of movable and immovable property.

3. The maxim “huur gaat voor koop means the lessee acquires a real right to the property

4. The maxim “huur gaat voor koop applies only if the purchaser was aware of the contract of lease when the property passed to her.

QUESTION 14

A & B agree orally that A will lease vineyards to B on condition

that B will give 10% of the grapes produced by

Him B, annually to A,

Which one of the following statements is correct?

1. No contract of lease will come into being, because a contract in which a party is given the right to consume the object of the lease cannot be a contract of lease.

2. No contract of lease will come into being, because the amount of the rent must be certain or ascertainable.

3. No contract of lease will come into being, because the rent must sound in money, that is the lessee must compensate the lessor with money.

4. No contract of lease will come into being, if it is agree that B stay on the farm permanent.

5. No contract of lease will come into being, because the agreement is not embodied in a written document.

Question 15

D leases his house to M. M fails to pay the rent before the end of the month as agreed between himself and D.

D has a combined summons issued.

Which one of the following statements is correct?

A The sheriff who serves the summons makes a list of all the movables on the premises and removes them for safe keeping.

B Domingo acquires a tacit hypothec as soon as the sheriff makes an attachment of the goods

C D ‘s tacit hypothec extends only to the lessee’s movables on the premises

D D’s tacit Hyphotec is only operative when and for so long as the rent is in arrears.

1. A & D

2. C & D

3. B & C

4. Only C

5. Only D

Question 16

S and T agree that S will lease his tobacco farm to T. G , the previous lessee , whose contract has expired

refuses to vacate the farm.

Which one of the following statements is correct?

1. Since there is still tobacco on the farm, which must be harvested, G may rely on the maxim “huur gaat voor koop”, to prevent S evicting him.

2. It is T’s duty to evict G, because he is not entitled to protect his possession.

3. It is S’s duty to evict G, because T only has a Personal right against S to claim possession of the farm.

4. It is T’s duty to evict G, because T has a personal right against G to claim possession of the farm.

Question 17

X rents an antique coach for his daughter’s wedding reception.

After the wedding reception, X decides to

transport dirty chairs and cutlery from the reception area to his

home.

Which one of the following statements is correct?

1. X failed to use the coach only for the purpose for which it is being leased and the lease contract is invalid.

2. X failed to use the coach only for the purpose for which it was being leased and is therefore obliged to make good the damage resulting from the improper use.

3. X rented the coach for a specific period and is entitled to use it freely during the lease.

4. X rented the coach for specific period and is entitled to use it for any purpose he wishes during that period, as long as it is not damaged.

Question 18

Which one of the following statements is incorrect?

A the contract of lease normally gives rise to obligations of a continuing nature

B As soon as the lessee of immovable property falls in arrear with his rent, the lessor acquires a Hyphotec over the movables belonging to the lessee situated on the property.

C The rent may consist of monetary compensation or any thing which the parties agree upon

D In terms of the maxim Huur Gaat voor Koop the owner of the immovable property is prevented from transferring rights to another which have already been transferred to a lessee.

E The lessee may use the object of the lease the way he likes.

1. A & B

2. B & D

3 C & E

4. A & C

5 D & E

QUESTION 19

A Lessee rents a property which is subsequently seriously

defective.

Which ONE of the following statements is correct?

1. Where L, the Lessee, elects to remain in occupation of the seriously defective property, he may claim a reduction in rent.

2. If L, the lessee, elects to remain occupation of the seriously defective property, he may refuse to pay rent.

3. If L, the lessee, cancels the contract because the leased property is seriously defective , he will not be liable for rent from the date of cancellation, notwithstanding the fact that he elects to remain in occupation.

4. If L, the lessee, effects repairs to the seriously defective property he may claim the estimated (ACTUAL) cost of the repairs as a reduction in the rent.

QUESTION 20

J, a motivational speaker, rents a room from B. J and B

agree about the rent but forget to discuss the date on which the

rent must be paid. Two weeks later, B’s son M, brings home

some items into the room alleging that his father gave him

permission to use part of the room as a tuckshop.

Which of the following statements is CORRECT?

1. B has performed his duty to deliver the room to J by merely putting the room at J’s disposal

2. There is no contract of lease between J & B because they did not agree about the date of payment of the rent

3. There is a contract of lease Between J & B because they have agreed about the rent to be paid by J.

QUESTION 21

P, a rich young entrepreneur, leases his penthouse in Durban

to S. S fails to pay P the rent for 2 months. P acquires what is

known as the Landlord’s Hypothec for rent.

Which ONE of the following statements is INCORRECT?

1. The landlord’s hypothec is a tacit hypothec and arises automatically and immediately when S falls in arrears with the rent.

2. The hypothec is of no force and effect until P makes an attachment of goods.

3. The Landlord’s hypothec extends not only to S’s movables on the leased premises, but also to her other movables, irrespective of where they are kept.

4. The hypothec is operative only when and for so long as the rent is in arrears.

QUESTION 22

Tshepo rents a flat from her friend Lettie. The lease is not for a fixed penod and Tshepo has to pay a monthly rental to Lettie.

A year after the commencement of the lease, Tshepo becomes aware that Lettie no longer_has a valid title to the flat.

Which one of the following statements regarding the termination of a contract of a lease is CORRECT?

1. Although the installation of a security gate ia a useful improvement, Tshepo will not be entitled to remove it before she vacates the flat, since it is for the safety of future tenants.

2. Tshepo may terminate the contract of lease, since Lettie, who is the lessor, does not have a valid title to the flat.

3. Tshepo may terminate the contract by giving Lettie notice of termination which will only become effective if it comes to the actual knowledge of Lettie.

4. If Tshepo dies as a result of heart failure, the contract of lease between her and Lettie will automatically terminate.

QUESTION 23

Which ONE of the following statements describes the

duties of a lessor'?

1. The lessor must conclude a new contract with the lessee upon the expiry of their existing lease

agreement.

2. The lessor must pay rent. take care of the thing let and must restore the thing let on termination of the lease.

3. The lessor must deliver the thing let to the lessee- maintain the thing let in a proper condition and

ensure the lessee's undisturbed use and enjoyment of the thing let

4. The lessor must exercise his or her tacit hypothec when the lessee falls into arrears with his or her rent.

QUESTION 24

Andries is the owner of business premises in the city. He inherited the premises from his grandfather.

Andries is still a student and therefore-does not use the properly himself. In order to ensure that he receives

an income from it, he leases the business premises for a period of five years to Jolly Jackson, the owner of

a restaurant A year later Andries wants to buy a new car and therefore wants to sell the property to Christa.

Andries approaches you to ask whether the lease agreement with Jolly Jackson will remain in force after

he has sold the property

Which ONE: of the following statements is CORRECT?

1. The lease agreement with Jolly Jackson will not remain in force Ownership is transferred from Andries to Christa and Christa. the new owner, is not bound by the lease agreement with Jollv Jackson

2. The lease agreement with Jolly Jackson will not necessarily remain in force Christa. the new owner

has a choice of withdrawing from the lease or continuing with it

3. The lease agreement with Jolly Jackson will remain in force after the sale of the business premises to Christa and Christa is bound by the lease

4. The Formalities in respect of Leases of Land Act 18 of 1 969 provides that leases longer than five years shall not be binding on the purchaser of that immovable property. In this case Christa.

QUESTION 25

Which ONE of the following statements is CORRECT?

1. No formalities are required for the conclusion, of a valid contract, of lease.

2. A long lease can be described as a lease which has been entered into for a period of not less than five years

3. The Rental Housing Act 50 of 1999 is aimed at the protection of lessors against exploitation and

victimisation by lessees

4. The Formalities in respect of Leases of Land Act 18 of 1969 provides that a long lease must be registered

QUESTION 26

In which ONE of the following instances will Gift NOT be held liable for breach of the contract?

1. Lucky must vacate the house he is leasing from Gift. because Gift wishes to accommodate his visitors there over the weekend

2. Lucky must vacate the house he is leasing from Gift. as it has been damaged by lightning

3. Lucky must vacate the house he is leasing from Gift, because he is evicted by Gift's brother, Lebo, who claims to have inherited it from their parents

QUESTION 27

Job, a mechanic, rents a house from Theko. Job and Theko sign a two-year contract of lease in terms of

which Job is prohibited from using the house for business purposes without Theko's prior consent Job

moves into the house and, without Theko's knowledge, converts part of it into a workshop to repair cars

Job's neighbours are alarmed about his business activities and the potential decrease in the value of their

houses. Because of their complaints, and the fact that Job fell into arrears with the rent, Theko sells the

house to Fisto.

Which ONE of the following statements is CORRECT?

1. F will be bound to the contract of lease with Job due to the maxim "huur gaat voor koop"

2. F will not be bound to the contract of lease with Job if he was not aware of the existence thereof at the time when ownership passed to him.

3. To recover arrear rent, F may attach and sell Jerry's cars which have been brought to Job for repairs, even though Jerry has informed F that he was the owner of the cars.

4. To recover arrear rent, F may attach and sell a television set that belongs to Job, but is in Jack’s possession, who is Job’s friend.

5. F may not sue Job for breach of the lease agreement, since the contract of lease was concluded between Job and Theko, and not between Job and F.

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