Axel, a teacher by profession has been leasing a residential property, situated at Erf 467 Dom Street, Goother street, Windhoek, from Gerson for the past three years. The lease was to come to an end on 30 June 2020. However, on 17 April 2020, Axel phones Gerson and offers to renew the lease for a further three years, which offer Axel accepts. During this phone call, the material terms of the renewal agreement are agreed upon and Axel and Gerson further agree that the said material terms must be reduced to writing and signed by both parties. Subsequently, on 20 June 2020, Axel is shocked to receive a letter from Gerson, advising Axel that there will be no renewal of the lease and that Axel should vacate the leased property on 30 June 2020. Axel and Gerson never reduced their oral agreement to writing.

Advise Axel if a binding agreement with Gerson exists for the renewal of the lease for a further three years. Refer to case law.

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