❖ The essence of a lease agreement is that it is a legally binding contract. A lease agreement is therefore subject to all of the laws that pertain to contracts in general.
❖ The law clearly states that the obligations of the parties to a contract will not be extinguished by the death of either party, unless:
- the contract contains a clause that specifically states that the contract will terminate upon the death of one or both parties; or
- the will of the deceased party specifically states that the contract will terminate upon the death of the party in question.
❖ In most cases, the rights and obligations of the party in question will pass on to the executor of the deceased’s estate. This position was confirmed by the Courts in the well-known case of Lorentz v Melle and Others 1978 3 SA 1044 (T) at 1058C.
❖ This means that if a tenant or a landlord dies, the lease agreement will not automatically terminate unless the lease agreement contains a clause that specifically provides for such termination. In all other instances, the executor will take over the obligations of the deceased party and should be the first point of contact for the other party to the agreement. The rule that applies to all contracts applies to a lease agreement in that the rights and obligations arising from the lease will pass to the heir, as long as the heir accepts the inheritance.
