Can I force my tenant to trade?

“I own a small shopping complex. A key tenant, who must give six months’ notice if they don’t renew their lease, has just given notice. I don’t have a problem with that, but with months to go before they exit they have now stopped trading. This will have a big impact on feet to the complex if they don’t trade and I’ve asked them to continue trading until they vacate the premises, but the client refuses and says he’s cutting his losses. Can I force him to trade for the remainder of the lease agreement?”

Whether you can force the tenant to continue trading all depends on the terms of your lease agreement. 

In the case of Edcon Limited v Bay West City (Pty) Ltd, a landlord sought to force the lessee to continue trading after the latter gave notice that it would close its shop due to financial reasons. The lessee did however, continue to pay rent and maintain the premises. The landlord argued that, in order to attract customers and remain competitive in the market, tenants could not be allowed to simply close their doors whilst paying rent and are thus required to trade. The court however disagreed and held that, as long as the tenant honoured the lease, the landlord could not insist that the tenant continue trading where a term in the lease requiring the lessee to do so, did not exist. It further held that, should the lessee be obliged to carry on business for the full duration of the lease, even when suffering a loss, such onerous terms must be stipulated in the lease either expressly or by implication. 

Accordingly, unless there is a clear provision in your lease agreement that obliges the tenant to keep trading at full capacity for the remainder of the lease, you will not be able to force your tenant to continue trading. However, should there be such a provision you may be able to force your tenant to honour the agreement and continue trading.

It is accordingly advisable that you consult with your attorney regarding the lease agreement and to what extent it provides for the obligation to trade or continue trading during the period of notice. It may also be worthwhile to review all your other lease agreements to determine if the aspect of trading is adequately dealt with in your leases.

March 11, 2019
Customary and Civil marriages are equal, says Constitutional Court

Customary and Civil marriages are equal, says Constitutional Court

The Constitutional Court has recently delivered a significant judgment reaffirming that customary marriages and civil marriages hold equal legal status. Importantly, the Court clarified the implications and validity of antenuptial contracts within the context of customary marriages.

CSOS or Court? The choice is yours

CSOS or Court? The choice is yours

The recent judgment in Parch Properties 72 (Pty) Ltd v Summervale Lifestyle Estate Owner’s Association and Others 2026 (1) SA 449 (SCA) (17 October 2025) has brought welcome clarity to the long‑standing question of whether the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act) limits the jurisdiction of the High Court.

Hurt feelings ≠ Constructive dismissal

Hurt feelings ≠ Constructive dismissal

Constructive dismissal was incorporated into South African labour law in the 1980s and later codified in the Labour Relations Act 66 of 1995 (“LRA”). In terms of section 186(1)(e) of the LRA, an employee may resign, whether with or without notice, and claim unfair dismissal on the basis that their continued employment had become intolerable. Although the concept can be difficult to apply in practice, the Constitutional Court has clarified its meaning and reaffirmed its role within our law.

Sign up to our newsletter

Pin It on Pinterest