Specifying a narrow Permitted Purpose is very important
given that certain Premises may only be utilised for very specific purposes. Title
Deeds and Town Planning Schemes may in some instances impose stringent
restrictions relating to the use of certain Premises and certain areas may only
be zoned for certain activities i.e. manufacturing verses retail activities. Whilst
clause 6.3 in both Leases may seem to be a very obvious clause, it is a very
important one. In this regard, it should be brought to the Tenant’s attention
that “illegal activity” need not only refer to something as obviously serious
as, for example, manufacturing drugs. Something as simple as storing
counterfeit goods can have serious implications for a Landlord given that, in
terms of the Counterfeit Goods Act 37 of 1997 (“the Act”), any person who is involved in dealing in
counterfeit goods, or who aids and abets other persons to do so, can be held
liable for any actions relating to such goods. Landlords who, knowingly or not, facilitate or
enable other persons to deal in counterfeit goods can face serious consequences
in terms of the Act. Landlords who rent out storage facilities are particularly
at risk. The Tenant’s attention should be brought to the fact that should the
Landlord become aware of any criminal activity being conducted out of the
Premises, such activity will immediately be reported to the applicable body and
the Lease will immediately be cancelled.