IS A HARD-HITTING CONTRACTUAL TERM CONSTITUTIONALLY UNFAIR AND HENCE UNENFORCEABLE?
Mohamed’s Leisure Holdings (Pty) Ltd v Southern Sun Hotel Interests (Pty) Ltd (183/17)  ZASCA 176 (1 December 2017)
X had regularly, for 35 years, maintained rental payments under a lease. However, due to oversight on X’s bank’s side, rental was paid late on two occasions, a few months apart. The lease agreement allowed for immediate cancellation of the lease on breach, as the parties did not include a clause providing that an opportunity to rectify the breach must be given to the defaulting party. The landlord cancelled and the tenant disputed its right to evict it in the circumstances and called on considerations of ubuntu to be read into the agreement. The Supreme Court of Appeal found in favour of the landlord and the judgment gives a valuable insight into all the interests that must be balanced in such an enquiry.
STBB’s STSMA REFERENCE GUIDE
In this, the forty-fourth set of notes for your STSMA Reference Guide, Prescribed Management Rule 23 is discussed.
Prescribed Management Rule 23
(N.B. Print in landscape)