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.