LAW_OF_SALE___LEASE_NOTES

Lease: Study unit 1: Essentialia of a contract: these classify a contract as one of a specific type – e.g. contract of sale For a contract of sale you look at: a) An undertaking by the seller to deliver the thing to the buyer b) An undertaking by the buyer to pay a sum of money in exchange for the thing If the contract doesn’t have these terms it isn’t a contract of sale. If it doesn’t have the essentialia of any type of contract but is a valid contract it will be a contract sui generis. Naturalia: These are included in the contract by operation of law – they don’t need to be expressly negotiated by the parties (they are based on notions that are fair and reasonable). The operation of these natural terms can be excluded by agreement between the parties – i.e. the operation of the naturalia depends on the will of the parties. When the parties intend to enter into a type of contract = they agree on the essentialia of the contract concerned. The essentialia and the naturalia which is part of the contract by operation of law amount to the contract, which are enough particulars to ensure there is no doubt what they intend. Parties are also free to insert other terms in their contract which the essentialia and naturalia don’t provide for, in order to meet specific requirements = incidental terms. CLS cc © Sale & Lease Notes 2 Critical Law Studies CC © Study unit 2 Definition and essential elements Contract of lease: is a reciprocal agreement between the lessor and the lessee, whereby the lessor binds himself to give the lessee the temporary use and enjoyment of the thing in return for the payment of the rent. Requirements for a valid contract: There is no contract without actual agreement, but not every agreement gives rise to a valid contract. If the requirements aren’t complied with the contract will be rendered null and void. Essential elements of a contract: for a contract of lease for which the lessor and lessee must reach an agreement to conclude a valid enforceable contract are that: 1. The lessor deliver and the lessee receive a thing or property for the temporary use and enjoyment 2. It must be a thing or property which is being let 3. An amount of rent must be paid for the use and enjoyment An agreement, which doesn’t comply with these 3 requirements, isn’t a contract of lease.