Venalex (Pty) Ltd v Vigraha Property CC [2015] 2 All SA 645 (KZD) CASE FIRAC
The case of Venalex (Pty) Ltd v Vigraha Property CC [2015] 2 All SA 645 (KZD) deals with a dispute between Venalex (Pty) Ltd and Vigraha Property CC.
In this case, Venalex was the owner of a property and Vigraha Property CC was a tenant on that property. The lease agreement between the parties contained a clause that required Vigraha Property CC to obtain the necessary municipal approvals and licenses for their business operations on the property.
However, Vigraha Property CC failed to obtain the required approvals and licenses, leading Venalex to cancel the lease agreement. Venalex then instituted legal proceedings against Vigraha Property CC for breach of the lease agreement and sought damages.
The court found in favor of Venalex, ruling that Vigraha Property CC had indeed breached the lease agreement by failing to obtain the necessary approvals and licenses. The court held that this breach justified the cancellation of the lease agreement by Venalex.
Furthermore, the court awarded damages to Venalex, taking into account the rental income that Venalex would have received had Vigraha Property CC complied with the lease agreement. The court also ordered Vigraha Property CC to pay Venalex’s legal costs.
Overall, this case highlights the importance of parties to a lease agreement fulfilling their contractual obligations. Failure to do so can result in the cancellation of the agreement and potential liability for damages.