ASSIGNMENT 2
STUDENT ID: S120343
LECTURER/TUTOR: MR HUMPHREY MARAU
NUMBER OF WORDS: 2284 Contract law is a body of law that governs oral and written agreements associated with exchange of goods and services, money, and properties. Not only does contract law set out the rules and guidelines of how to form a contract but also teaches us how the parties to a contract are to fulfil it and what may happen when the terms of a contract are not fulfilled. The background or facts of the scenario are that Credit Corp (plaintiff) leased its commercial property situated in Vitogo Parade to Mr Singh (defendant) in 2002. The lease stipulated that interest would accrue on arrears of rent and outgoings and was due to expire on 1 April 2012. Sugar City Mall was the major shopping centre in town and Singh operated a bookstore from the premises called the Book Centre. By the beginning of 2007, MH’s had opened “Mega Centre” a large shopping hub which quickly became the most popular shopping destination in town. This new development had quickly become the most popular shopping destination and as a result, Singh suffered a substantially reduced turnover (defined as the amount of business transacted during a given period of time) and had difficulty paying the rental. Singh discussed a rent reduction with Credit Corp but the parties could not come to an agreement and as a result, Singh’s turnover continued to decline. Credit Corp was aware that the turnover was continuing to decline but wished to continue a contractual relationship with Singh. Singh was in no doubt about what he was obliged to pay under the lease, but his turnover made it clear that he could not do so and continue to trade. For this reason Singh wrote a proposal asking that the rent be reduced. In early 2012, Singh failed to make one payment of the monthly rental and thereafter paid only half of the monthly rental after which Credit Corp sought a proposal from Singh in respect
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