It is essential to ascertain
whether or not the provisions of the Consumer Protection Act 68 of 2008 (“CPA”)
apply in each instance, because this will determine the rights and
obligations of the parties. This clause alerts the parties to the fact that the
CPA may or may not apply and can seem rather confusing. In reality, however,
determining whether or not the CPA applies is actually quite simple and can be
summarised as follows:
If the tenant is an individual,
including a Sole Proprietorship, then the provisions of the CPA will always
apply.
If the Tenant is a Company, Close
Corporation, Trust or Body Corporate (“juristic entity”) with an asset value or
annual turnover of more than R2 000 000.00 (Two Million Rand), then the
provisions of the CPA will not apply (note that when calculating the threshold,
gross and not net amounts apply).
If the Tenant is a juristic entity
with an asset value or annual turnover of less than R2 000 000.00 (Two Million
Rand), then the provisions of the CPA will apply, save for the provisions of
section 14.
The Duration, Automatic Renewal
and Notification clauses deal specifically with the provisions of section 14
and this is the reason that they differ/are not applicable in the non – CPA compliant Lease Agreement.