Frequently Asked Questions

Application of the CPA Clause


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.


Last Updated: 2014/05/22