Question

Identify the form of termination of an obligation in each of the following situations:

1.1 Raymond enters into an agreement with Sterns to buy a wedding ring at the end of the month. Two days before the end of the month, Raymond’s girlfriend breaks up with him. Raymond and Sterns agree that he will purchase a watch instead.

1.2 Beauty rents a house from Patience with an option to buy the house. Three months thereafter, Beauty buys the house. The rental agreement terminates.

1.3 Claire agrees to cook for Nick for the next three months. Nick claims that the contract was for five months. The parties agree that she would cook for four months.

1.4 Chris agreed to give Janine a lift to work for the next two months. A week after conclusion of this contract, Janine buys her own car and informs Chris that she no longer needs a lift to work. Chris accepts this. (2marks)

1.5 Cathy rents an office from Michelle at N$2 000 per month for a period of one year. Shortly after their agreement the office is totally destroyed by fire caused by an electrical short circuit. The lease agreement will be terminated. (2marks)

Answer 1

1.1 )When the Raymond and Sterns entered into a contract, both the parties are bound to perform their respective functions. However, Raymond terminated the agreement for the reasonable and uncertain cause. So, if both the parties agree, they may enter into Novation of buying or selling the watch instead. Novation is a substitution of existing contract, where parties may change the nature or object of agreement.

1.2 ) If Beauty wants to buy a house by terminating rental lease, then the rental lease should be bilateral cancel. This cancellation should be registered in the office of sub-registrar. Therefore, after legal cancellation, Beuty can buy that house.

1.3) If both the parties agree for Cancellation of Prior Agreement, they can go cancel the same. Afterwards, they can enter into a new agreement with mutual consent.

1.4) This is a breach of Contract by Jennie . She, intentionally, not honored the terms of a contract. However, damages for breach for breach of contract will only be given, if there is material breach of contract ( i.e., the other party- Chris has incurred any material losses).

1.5) It is a right of tenant to occupy the property until the lease agreement is terminated by:

• Law or government
• the lease agreement came to an end
• when landlord and tenant agreed to terminate the agreement
• when the property is entirely destroyed

Therefore, the case of Cathy and Michelle falls in the above mentioned provisions. Therefore, the lease agreement will be terminated.