Second, the judgment emphasizes that it is absolutely essential that renewal clauses be developed with great care in leases. The parties must either provide an agreed and fixed rent applicable in the event of a renewal, or, if they have the rent determined at the time of the extension, they must provide a deadlock-break mechanism. The lease was then renewed on two other occasions. The Tenant attempted to exercise the possibility of renewal for the third time, but the lessor stated that he was available for the proposed extension with an agreed rent of R150,000 per month, including VAT. The Tenant argued that a fair rent was an 8 per cent annual escalation of the prevailing rent at the time. The position in our legislation is that an agreement is unenforceable, which means that landlords and tenants must therefore be careful when developing an extension clause. While the renewal parties (renter and tenant) have agreed to renew the current tenancy agreement, it is necessary to define the method by which this extension will be established. The article “IV. “Extension Period” contains three box instructions for documenting an effective report on this transition. Note that only one of these items can be selected. If the current lease is extended for a period of time, select the first quince box under “IV.” Extension period. As a result, the terms of the current agreement remain consistent throughout the extension and require the number of “days,” “months” or “years” of the life of the renewal, produced on the empty line of the “extending” label. Check one of the three boxes (“days,” “months” or “years”) to indicate the time unit when discussing the number that has just been reported. The current lease can be renewed, but with no fixed term.
That is, this extension can occur, while “the rent is converted into a monthly lease.” If this is the case, choose the second instruction in the “Fourth Extension Period”. Note that since a month-to-month agreement can be terminated at will, the second renewal option also requires that a predetermined number of days be indicated as the length of the period that a portion of the other party must count as termination. Therefore, if the second option has been selected, the number of “days” messages required by the resilient party must be inserted into the blank line indicated. Note that if this number of days differs from the minimum required by the state for this extension, the largest of these numbers is used as the minimum number of “days” messages to be provided by the terminating party. If none of the first two options of the “Fourth Period of Extension” adequately defines the terms of renewal of the original lease in question and activates the third checkbox in this section (marked by the word “other”). The blank line of this selection allows a direct report to be drawn up or to name an appendix with the specifics of this renewal by title. However, when a tenancy agreement expires, this does not always mean that tenants must leave the property immediately. In most cases, an authorization begins between the tenant and the landlord. Ponnan JA found that, given the express terms of the agreement, there does not appear to be room for the importation of the allegedly tacit tenant clause. In fact, as it is in Robin v Guarantee Life Assurance Ltd: Just like a lease renewal letter, this option comes with its own terms like a rent change and much more.
If the option depends on the tenant to apply for the extension, the lessor must give his approval under the terms of this option. But if there is no option, neither the landlord nor the tenant has an obligation to renew the lease.