Question

In: Economics

Cloete and John are both well renowned businessmen in the beautiful coastal town of Swakopmund. Though...

Cloete and John are both well renowned businessmen in the beautiful coastal town of Swakopmund. Though both men are rivals when it comes to business, sometime last year they have put aside their unnecessary rivalries and indeed concluded a number of commercial agreements and partnerships. In one of their lucrative transactions, Cloete and John acquired a very beautiful and immense building in the coastal town. Without wasting time, both rich men renovated and repainted the building with the view to renting it out to prospective tenants. An advertisement to this effect was placed in The Namibian newspaper, and many offers started flowing in. In the end, a lease agreement was agreed upon and concluded between Cloete and John (herein lessors) and a group of five young ladies (herein lessees) in May 2018. One of the terms of the contract was that the lessees, since they are all unemployed, would indulge in the acts of prostitution to enable them to raise rentals of N$ 10 000 per month. For the first two months, all parties to the contract performed as per their obligations under the lease agreement. However, since January this year, lessees have been in breach of contract in that they have failed, refused or neglected to pay their monthly rentals in terms of the lease. Despite numerous notices by the landlords to the defaulting tenants, no single payment has been effected since January 2019. As a result, John and Cloete had no other option but to take the defaulting tenants to court so as to claim unpaid rentals and interest thereon.

Instruction: With reference to relevant legislations, case law and general principles of law of contract, discuss John and Cloete chances of succeeding in their legal action.    {10 marks)

Solutions

Expert Solution

Cloete and jhon are the business partners and have the right to go to the court for submitting their writ or petition in court against defulters or lessees. The judge would take his/her decession according to the laws made by the constitution, as the Constitution protects property rights through the Fifth and Fourteenth Amendments' Due Process Clauses and, more directly, through the Fifth Amendment's Takings Clause. The building which cloete and jhon build for their business, the building is belonging or concerned with thier private property or we can say their personal property. The property rights which the US Constitution provide its citizens are as :

Property rights define the theoretical and legal ownership of resources and how they can be used. In many countries, including the United States, individuals generally exercise private property rights or the rights of private persons to accumulate, hold, delegate, rent, or sell their property
This attribute has four broad components and is often referred to as a bundle of rights: The right to use the good. The right to earn income from the good. The right to transfer the good to others, alter it, abandon it, or destroy it .The right to enforce property rights.personal property includes land and buildings, typically includes furniture, fixtures, tools, vehicles, and machinery and equipment.

Cloete and jhon have to submit their writ against the lessees ,as their is no other way for jhon and cloete and have their fair right to go to the court.the court would definitely announced the decession in favour of jhon and cloete under the laws made by Constitution. Lessors demand and petition is genuine, every judicial body would be in favour of lessors. They spend their money on their business for the purpose of earning, they had made a lease agreement at the time of lending or leasing their property on the basis of monthly installments. The lessees brok teir agreement and that is thier fault not the fault of jhon and cloete.The court will definitely support for lessors not for the lessees, and any judicial body would announce thier decession in favour of Cloete and Jhon.


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