QUESTION THREE Jackson has been struggling financially and decides to lease a portion of his premises to Lacy who owns a bubble tea shop. Lacy is satisfied with the premises and signs the lease agreement. Three months into the lease agreement, Jackson notices that Lacy has employed a nail technician who offers nail services in the shop. Lacy has installed a plug point and a small table at the corner of the bubble tea shop. Jackson approaches Lacy about his observation, and she states that she is not in breach of her lease agreement as she is only using the premises which she has leased and nothing more. She further notes that she has done Jackson a favour by installing a plug point as the shop only had one plug point initially. Jackson is angry, as the plug point installation has created visible damage to the walls, and there are wires which are not safely secured. 3.1 Distinguish between the various duties of both the lessee and lessor. You are required to provide a practical example for each duty listed. (12 Marks) 3.2 Jackson is unsettled about Lacys new business venture in the leased premises. Advise Jackson fully regarding the legal stance on the above scenario. You must refer to case law in your discussion. (13 Marks) QUESTION FOUR There has been a copious amount of criminal activity in the area which has in turn created panic for many shop owners. Jackson has decided that he needs to insure his business premises immediately. 4.1 Advise Jackson as to the various types of insurance which are available, and which type of insurance would be most suited to his needs. (5 Marks) Jackson approaches an insurance company to indemnify his business. The insurance company requests that Jackson declare that he has all certification regarding the installation of gas cylinders, stoves and all electrical equipment in his shop. Jackson knows that he has not contracted certified gas installers, and has rather cut costs by doing the installation himself. He nonetheless states that he is in possession of the certificates. 4.2 You are required to evaluate the above scenario and discuss Jacksons actions in terms of the legal duties and implications which an insured bears upon taking out insurance. You are also required to cite the applicable case law. (15 Marks) QUESTION FIVE Selena works at Jackson s coffee shop as a singer. She performs every day from 5 pm until 7 pm. Selena also received a uniform with Jacksons shop information to wear during her performance. Selena was given a contract from Jackson for a period of 2 years, and she is often invited to join staff parties and social events which are hosted by Jackson. Selena submits invoices and charges VAT as she belongs to a closed corporation which has two (2) other people in it. 5.1 You are required to list the differences between an employee and an independent contractor. (6 Marks) 5.2 Based on the set of facts above determine as to whether Selena is an employee or an independent contractor. Justify your answer fully. You are required to cite the applicable case law.