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Commercial Lease Contracts

A commercial lease contract is a written agreement between the landlord and the tenant wherein they both agree that the landlord will allow the tenant to rent a business space for a specific period of time and the tenant will only occupy the rented space to run his/her business and shall pay monthly rent to the landlord until their lease agreement come to an end. 


In order for the landlord and the tenant to legally conclude a valid contract of lease between them, they must agree that;


  1. the landlord (lessor) must allow the tenant to occupy the immovable property (rented space) for specific time (temporary use) and without disturbing the tenant (enjoying the use of the property).
  2.  the immovable property must be suitable to be rented.
  3.  the tenant must pay rent to the landlord for renting the immovable property.

The Consumer Protection Act 68 of 2008

The definition of "supply" in the Consumer Protection Act, when used as a verb in relation to goods, includes 'rent' and 'hire' in the ordinary course. of business.


Also the definition of 'service', makes it clear that ‘access to or use of any premises or other property in terms of a rental’ is regarded as a service in terms of the Act.


The landlord is under the statutory obligation, as stated in the Consumer Protection Act 68 of 2008, to deliver the property to the tenant, that is not in a defective condition when the tenant receives the property and must be usable and durable for a reasonable amount of time and must comply with any statutory standards.


Even if the tenant was made aware by the landlord that their lease agreement, contains a voetstoots clause, the (tenant) consumer still have a right, even if the defect existed before concluding the lease agreement and the landlord indicated such defect to the tenant and but developed further defect later, while were still supposed to be useable and durable under s55.


The consumer (tenant) have a right to choose, where to claim refund, repair or replacement of the goods if they do not comply with the requirements and standards under s 55 of CPA, within 6 months after the conclusion of the lease agreement.

The lease agreement between the landlord and the tenant must not contain unfair terms.

The parties are free to determine the terms of their lease agreement, however section 2 of the Consumer Protection Act introduces and protects 9 nine fundamental consumer rights, which are; -


  1. the right to equality in the consumer market;
  2. the right to privacy; 
  3. the right to choose suppliers; 
  4. the right to disclosure and information; 
  5. the right to fair and responsible marketing; 
  6. the right to fair and honest dealing; 
  7. the right to fair, just and reasonable terms and conditions;  
  8. the right to fair value, good quality and safety; and
  9. the supplier’s accountability to consumers.


The right to cancel a lease agreement between the landlord and the tenant.

A lease agreement between the landlord and the tenant, may be terminated in terms of the common law, which is the effluxion of time, that is the lease agreement is terminated in case of the landlord's death (long term lease).


A lease agreement may also be terminated before the expiry date, if there is a breach of contract committed by the tenant. 


If the lease agreement between the landlord and the tenant is for 5 years and the tenant, during the term of the lease agreement, fails to pay rent or breaches any provision of the lease agreement, the landlord , must in terms of the s 14 of the CPA, give 20 business days' notice, if the tenant still remains in breach and cancel the lease and the tenant still remain liable for overdue rental and a cancellation fee.


The landlord and the tenant, when concluding a lease agreement must set out their rights and obligation in a clear and understandable terms to minimize disputes.