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1.5 Trademark and patent prot ectio n

A trademark is a brand name, a slogan or a logo. It identifies the service s or goods
r.
of one business and distinguishes them from the goods and services of anothe
Examples include:
0 Brand name: McDonalds

0 Slogan: I'm loving it

0 Logo: The McDonalds name plus the M
0 Specifics: Mis depicted as the 'Golden Arches'.

A brand name is therefore a word or combination of words (e.g. Kentuc ky Fried

Chicken). A slogan is a short phrase or a sentence while a logo is a distinct ive
this
picture or symbol. When a trademark has been register ed, nobody else can use
happen s, legal action may result.
trademark, or one that is confusingly similar. If this
t or a
A patent is an exdusi\"e right granted for an invention. An inventi on is a produc
somethi ng, or offers a new technic al solution
process thac pro\"ides a new way of doing
her
to a problem. The patent provides protection for the owner by giving him or
ng, disposi ng or offerin g to
Lhe right to exclude others from making, using, exercisi
inventio n. The protect ion is grante d for a
dispose of the invention, or importing the
limited period, generally IO years.

1.5.1 Checklists for registering a trade mark or pate nt

Checked
Trademark application
1. Complete form TM1 in triplicate. Two copies are for office use and the third is
returned to the applicant as proof of the application.
2. You must file a separate Trademark Application for each international class
of
goods or services for which you would like to use your trademark.
3. To identify the proper class for goods or services go to: Nice Classification
8theditionathttp-J/www.wipo.int/classificationslfulltext/nice8/enmain.htm.
Alternatively, visit the OPC office and they will be able to help you to identify
the correct dass/es of your goods and/or services.
4. lndkale the dass In field 51 of fonn TM1.

S. lndkate all the goods or seivbs for which ~ would like to use the
1rademartfn Feld 57 of the form TM1. Take care not to put goods or services
belonging mdifferent dasses In one trademark applfcatlonJ If you do so, you
.wiU be advised to amend the specification to Include the goods or services
which belong only to the one dass, andyou win have to file a separate
appllcatfon for the-.

6. Reid 1.4~11\e Jll1 "'idchls fots,.,vk;e; 1:$. the address at which you are going
to receive aJf r.ommunfcatloosfn>m the OPC office. Ensure that in case of
.a dllnge ohddn!ss you fnfonn • OPC office by requesting •a change of
actchss Oil lomtJM2: Thft..rnust be an address within the Republic
m~Af dca.
 J

Trademark application Checked

7. Submit the completed TM1 form/s along with your registration fee. Refer to
www.cipc.co.za for current application/registration fees and payment options.

8. Should your application comply with all the formal requirements, your
application will be allocated an application date and an official application
number. All communications with the Office will carry that application
number.

Patent registration Checked

1. Conduct a search on existing patents to ensure that no existing patents are
being infringed and that the invention is new/novel (s 25 of the Patent Act).
o Although not essential it is advisable that this initial search takes place.
o The search is conducted in the Pretoria office of the Patents Registrar.

2. Application to register
The application for a patent can done be in one of three ways:
o File a provisional application. This may be undertaken by the applicant with
or without the assistance of an attorney.
o File a complete application. This must be done via a patent attorney.
File a PCT (Patent Co-operation Treaty) application (if applicable).

3. The following forms can be obtained free of charge from CIPC. They must be
completed (in black ink or typewritten) and submitted to CIPC:
o P1: Application for a Patent and Acknowledgement of Receipt in duplicate
o P2: Register of Patents in duplicate
o P3: Declaration of Power of Attorney, one only submitted
o P6: Provisional Specification, one only submitted

4. Forms P1, P2 and P3 must be completed and submitted to the CIPC office with
the prescribed fee.

5. Full detailed descriptions and specifications, drawings on A4 pages etc should

be included.

6. Registration of a patent: Once a complete Patent Application has been lodged,

formal examination starts. This process usually takes about six months.

7. If all the formalities have been complied with, the application is accepted. The
applicant is then required to publish his or her patent in the Patents Journal,
published monthly by the government printers. This allows members of the
public the opportunity to lodge objections. If there are no objections after
three months, the Patents Registrar will issue a Patent Certificate.

(Information in this section was taken from the CIPC web site at www.dpc.co.za.)
1.5.2 Patent forms available on the CIPC web site
The following additional forms are available on the CIPC web site and can be
downloaded should you need them.

Form name/type Desaiption

-
P4 Application or request to registrar
-
P7

PS
Complete specification

Publication particulars and abstract --

P25 Entry of international application under the Patent Cooper ation Tre----
into South African national phase and acknow ledgeme nt of receipt aty

P26 Statement on the indigenous biological resource, genetic resource- - - - -

tradition al knowledge or use •

PCT request Entry of international application under the Patent Coope ration, :;=---
into South African national phase and acknow ledgem ent of receip: aty

PCT fee
calculation sheet
PCT fee calculation sheet
-----
. .
1.5.3 TM1 Apphcat1on for the regIstratIon of a
trademark
. .
-------
IB'IIU:a,11111111-=a
---a. :r.-
OFFICIAL DATE STAMP
......__ ,_11a. . . . . .a , a - -
....._.,1U1.•••• n :a tt.•••
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acknowledgement
1.5.4 P1 Application for a pa ten t and
of receipt
P032E
Ill.UN I
R6'Ul.CCFSOOTHPFR'CA Ferm Pl
PATENTS ACT, 1971

APPLICATION FOR A PATENT AND ACKNOWLEDGEMENT OF RECEIPT

[Sect ion 30 (1)-Re gulat, on 22)
(See notes overleaf)

of the present appl,collon llled

by !he u.-me n!Jon ed applocant on lhe basos
The grant ol • patent ii hllwby request..i
in dupicall. (ii

a• •N •
I
Applocanrs or agenrs reterenca

I
:·:~---,·-,
(i)

Addre ll(•)o l appbn t(1)

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(1¥)
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lheaa :a,~l ormP 2.

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(vi)
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llo,, _~N o.
Thil appl allct llillo r•~o ladd ttlor

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1.5.5 P2 Register of patents (To be lodged ., dupkala)

PATENTS ACT. 1971
REPlJU: a= SOl/lHAFRCA
REGISTER OF PATENTS
Acmp lmlCl dall
Otllclal applic:ation No.
Lotlglngtllll:l'IMalll
ol
I I
21 01 221
Gr... idllt
lnllmltionll dlalcaticrft
ul I
sd
f i j rwne( I) of applclnl(l)/PlllnlN(I)

111

a. ---
Appllclnll IUblllulld: I
111

a. .... ..

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1 N 1111111(1) tJI lrwn l(I~ I

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1.5.6 P3 Declaration and power of attorney
REPUBLIC OF SOIJTll AFRICA FORM P.3
PATENTS ACT, 1978
DEX:L\RA.110N AND POWER OF ATTORNEY
(Seed• lO . ....,...,_ 1, ll(i)(<) ood ll)

!I
PAn::.T APPi.iC.~TION lliO
01
REF: I 22
LODOING DATE
I

"I .
EARLIEST PRIORITY CLAIMED COUNTRY NUMBER DATE

33 31 32
NOTE The- c.ournn mu,1 be tndicstcd b, ill Jn1crna1ionil Abbrc""i11ion. sec schedule 4 ort.hc Regulations

InnE OF INVENTION
I
I

1.5.7 P6 Provisional specification

REPUBLIC OF SOUTH AFRICA

PATENTS ACT, 1978

PROVISIONAL SPECIFICATION
(Section 30(1) - Regulation 27)

Oflicial Appfication No. Lodging Date

I 22

Ful name(s) of applicant(s)

71

Ful name(s) of lnvenkn(s)

1.5.8 P4 Application or request to Registrar
REPUBLIC OF SOUTH AFRICA
PATElflS ACT 1978
APPLICATION OR REQUEST TO REGISTRAR
(REGULATION 39)

(To be lodged ,n dupl,cate)

Offioal date stamp

Patent/Application No.: 21 01

lnlhenameol: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

In l8fflls of section ............... ol lhe /!v:;I. and/or regulation ......... of lhe Patent Regulations. the applicant her,,by AO(luests
Ille l'ollowing: ••••••••••••••••••••••••••••••• •• ••• •• ••••••• ••• •• •••• ••• ••• •• •••• •• •••• ••• ••• •• •••• ••• ••• •• •••• ••• ••· .••.......................................

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000000000000000,,oouoooooo••••••••••••••••••••••••••••••••••••••••••••••n•••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••

~ l a . if sry, lodged In suppon d the req.-t ............................................................................................

..................................................................................................................................................................
...............................................................·-··························································--·--·········--··············..······
.................................................................................................................................................................

1.5.9 Trademark infringement - discontinue use letter

Use the 'Pradnnarlc infringemtnl - discontint1t use ltttn when you feel that someone
is using your trademark, trade name or logo over which you have priority rights.
Remember that you must have taken the necessary steps (in law) to protect yourself
against unscrupulous people and be able to prove, if necessary, that you do in fact
have priority rights.
 •iii I titfiiM,IUUfii lid JHtbi
From: <Insert your company name> Date: <Insert date>
<Insert company address>
To: <Insert the name of the infringing company's representative>
<Insert the infringing company's name>
<Insert the infringing company's address>
Re: <Your trademark or trade name> trademark

To whom it may concern

We are the owners ofa trademark registration for the trademark <Insert
trademark or trade name> for the following services < Insert the services and
categories in which your trademark is registered>. We have used this trademark/
trade name consistently for <Insert number of years> years.
Your company is currently using a similar mark, specifically, <State specific details
in which tl1e trademark or trade name is being used>. A comparison of your mark
to our trademark reveals that you are in violation of the provisions of the South
African Trademarks Act No. 194 of 1993 (as amended by the Intellectual Property
Laws Amendment Act No. 38 of I 997 and the Companies Act No. 71 of 2008).
You are hereby requested to cease using the trademark on your products or services
immediately. Your failure to notify me by the <Insert date> that you have taken
steps to address this issue as stated above will result in our taking legal action
against your organisation.
Be advised that this matter greatly concerns us and tl1at the protection of our
trademark is one of our highest priorities. However, if you cease using the
infringing mark with immediate effect, we will consider this matter resolved. We
trust that you will take this opportunity to avoid a legal dispute.
Please contact my office if you require any further information.
Yours faithfully

Company representative
You could also attach a sample of the infringing logo as well as a sample of your
logo for the company to compare the two and you may want to state in the letter
what you think the similarities are.

1.6 Choosing a site for your business

1.6.1 Site selection criteria checklist
Whether you are looking for prime retail space, offices or a warehouse in an industrial
area for your business, it is important to determine what your requirements are
cruma
upfront. Before going site hunting, use this Sue selection checklist to record your
needs and any specific information about your business. In the criteria column, write
down your requirements and comments and then when you go and see a site you
can record Lhe acLual charcH 1c11,t1Cs nl Lhc site in the second column. When your visit
is complete, compa1·c your critt'ria Lo the actual site and determine whether or not
your requiremen ts have bt:en met by writing a Y (for yes) or an N (for no) in the third
column. \.Vhen you have been through this process for each site that you visit, you
can Lhen delermine which is the best site for you and your business, and make your
decision accordingly .

Criteria Actual characteristics Requirement

of the site metY/N
1. Size (required size in square metres)
2. Monthly rental (and/or rental per square
metre)
Rental linked to turnover
3. Amenities available
Do they meet the requirements of your
business and customer profile?
4. Levies applied by landlord or shopping
centre management
5. Term of lease
6. Rent-free periods (if applicable)
7. Ease of access (entrances and exits)
8. Parking facilities
9. Signage
10. Visibility
How prominent is the proposed location?
Is there a clear and unobstructed view of the
location from the main road/entrance etc?
11. Source of customers
Identify where potential customers will be
coming from
12. Proximity to competitors
How many prominent competitors are
within the catchment area?
How competitive are they relative to the
proposed offer?
13. Closeness to prime location

14. Potential for expansion

15. Store frontage
16. Ventilation

17, Electrical requiremen ts

 iAh·t HNMtiii.ji•ii·i·U!O-i·h41$Ji----------
Criteria Actual characteristics Requirement
of the site met YIN

18. Other tenants

Details of other tenants and nature of
services offered
19. Suppliers
Site on suppliers' current delivery route
20. Total suitability of site
21. Security

1.6.2 Property brief for property agents

Should you decide to use the services of a property broker or a real estate agent to
help you find a suitable location for your business, complete the Property brief to supply
the agent with specific details regarding your requirements. Remember the more
specific you are and the more information you provide, the easier it is for the agent to
find sites that meet your needs. This will hopefully save you time as the agent will not
take you to sites that do not meet your requirements.

1. Client details

Client name: Contact telephone no.:

2. Business type
Provide a description of the business, the sector or industry in which the company trades and
details of the company, products and/or services offered. Also state whether you feel that
your business is a destination store or if you rely more on passing trade (in the case of retail-
type businesses).
3. Rivals and competition, complementary products/ services
Provide a list of companies, products and services that compete for customer spend.

4, Description of the dient/customer

Provide a profile of your perfect client. Include income levels, ethnicity if applicable,
spending patterns. traits and characteristics.

5. Site description
Desaibe your perfect site. Include:
a size of store/operation
a general location (mall, strip mall, convenience, value mart, stand alone, prime retail,
lndustrla~ manufacturing, office space etc.)
c size of centre
.and.power
o if a centre with an anchor tenant is preferable
o other facilities.
6. Size and use of space
Provide the required size and a breakdown of the space, i.e. retail, store, back office, kitchen,
toilets, deliveries.
7. Rent and terms
Provide a minimum/maximum range as this will provide the basis for negotiations with the
landlord or leasing agent.
o Rent o Tenant installations
o Duration o Escalations
o Other
8. Preferred locations
List the locations where sites are required. Be as specific as possible, i.e. rather than stating
that sites are required in a specific province, state which suburbs you prefer and even provide
names of shopping centres, strip malls etc.
9. Occupation date
For each of the listed locations, provide a preferred occupation date.
10. Critical success factors
Tick the relevant boxes below if the following criteria are vital to your business.
Add additional critical success factors if necessary:
a Parking requirements
a Visibility and signage
a Passing vehicle traffic
a Proximity to highway
a Proximity to main arterial
a Proximity to competition/complementary businesses
a Security
a Other. please specify: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

11. General
Provide information on any other facet of the business that will further benefit site location
and assessment.

12. Attachments
Attach additional documentation which can also be used to help with your site selection.
This could include:
Cl a list of your existing operations/stores and where they are located
a a general floor plan or store layout
Cl business prospectus
a samples of marketing material.
 .r:[ll!a·.-,ttis·•·t.-
t-D-Uhi'Jiti,i•i5~1"-----......._,
.-.: ,r
1hncrrt
ss with a pro spective landlord
1.6.3 Issues to addre
. . from which your business operates or plan to buy •
Unless you own• the buildi ng chances are you will lease or rent the business prern15es.
ose the .
property for th ~s purp ' . "th landlords or leasmg agents. So before your rush
ss the following
This obvi~usly 1_nv~lves deahn!~~h may not be favourable, addre
that the more
headlong mto sigrung a leas~ tl ne otiation phase. Remember
issues witl1 the landlord~ dunng tquir!ment s and the rental you are prepared to pay,
specific you are regar dmg your r . 1 dJord
. . • aJ "th a prosp ective an •
the easier 1t will be to e WJ

1. What is the period of the lease?

shorter periods than they were severa
. l years ago.d If you are
Generally Ieases now are for 1ah to grow, you o not want
1
. startin• g out •m bus·iness and your business has the potent
•• ·
Just be in a pos1t1on w ere you can move on 1f you
to be locked into a long lease. It is better to
outgrow the premises. It is usually better to avoid long leases.

2. Does the lease have an early-out clause?

year of trading. The
Good leases have early-out clauses, generally at the end of the first
may not have been
landlord should have taken into account the fact that the premises
termi nation of the lease.
suitable for the tenants and should therefore allow for early
first year and if you need to
Evaluate your business needs carefully towards the end of the
e, then you will be tied
move on, then do so. If you do not take advantage of the early releas
in for the remaining term of the lease agreement.
ng/premises?
3. Who is liable for repairs and maintenance to the buildi
needing a coat of
Over and above the normal wear and tear in the business like walls
responsible for repairs to
paint or a lock on a door needing to be replaced, find out who is
ed tiles etc. These can
things such as plumbing problems, broken windows, broken or chipp
your responsibility. If repair
sometimes be expensive and you want to know upfront if this is
done the repair work, the
costs do fall to you and you vacate the premises without having
n of or your whole deposit.
landlord will have a claim against you and may hold back a portio
4. Who is responsible for payment of the municipality expen
ses?
for your account and which
Ask the landlord to be dear regarding which of these expenses are
and electricity account
ones he or she covers. For example, you will have to pay the water
the rates and taxes on
and probably also rubbish removal, but who will be responsible for
es one bill from the
the property? If you are located In a centre where the landlord receiv
are costs apportioned?
munldpallty and divides the total cost among all tenants, then how
sed location7
• 5. What Is the nature of the businesses surrounding the propo

~=
~nvestlga: what sort ofI businesses are located around your propo

ne g ws use loud machinery, then the site Is not going to be

sed site. This is important
you require quiet environment In which to operate a call centre
suitable.
and your

offering certain
!;: 8J :;~ ==:.t~ e;se which could prevent you from
ffili carefully. Many una11ts In .sh In 0
:mres 8• Is allow
will negotiate
Wltfi t!le. llndlgrd to ensw, that no com°,:, g9 nd speclflc locationsed Into the same
;q,~pJ 0TN.,eJ)Uh1m1, Your:l>usln,,8$$ Q.n : ra or Usln
1
!Jlvkfit ~rrent forrn) may oot compete with these
rl! pl~s to grow YO!!U,IJl..9! of products or services
~·;~~.,r;,;:,.,9--:;:,,.'.;t ~..ir~Yfl.U a~ Unable ~"'ll~l>ecause
of restrictions in
 J
-
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-
- $tiMii O C WS::1

7. What are your security requirements and does the landlord provide sufficient
security to meet your needs?
e
Sadly, in this day and age security is a crucial issue that you must address. You are responsibl
for the safety and security of your employees and the customers coming into your business.
Find out what security systems the landlord has in place or if there are any restrictions on the
type of security systems you are allowed to put in place.

8. What access and parking facilities are available and are these sufficient?
Your staff and customers may require parking at your premises. Before signing the lease
agreement check to ensure that people can gain access easily to the complex or centre and
also watch to see how full the parking area gets during peak times.

9. Find out if any new zoning is being undertaken by the local municipality.
You do not want to find yourself in the position where you are moving into new premises
that you thought were zoned for business purposes only to find out that the surrounding
residents have petitioned the municipality to restrict business activities in the area. Another
important point to look out for (if your business relies on this) is where current bus and taxi
routes and stops are located and if there are any plans to change these.

10. What is the landlord prepared to provide or pay for regarding the set up of the
business?
Landlords sometimes provide tenant allowances to help new tenants prepare the premises for
trading. This can include paying for the exterior/interior of the building to be painted, installing
ceilings, tiling or carpeting, installing electrical items such as lighting etc. If the landlord offers a
tenant allowance, ensure you obtain the details in writing prior to signing the lease.
11. ls the landlord prepared to offer a rent-free period?
t,
If the site requires some work or the installation of your furnishings, fixtures and equipmen
then negotiate with the landlord to take occupation at a certain date but not to pay rent
until you begin trading. The length of the rent-free period is largely dependent on the
nature of the business. Smaller businesses may receive one month's free rental whereas a
larger business that is going to take longer to set up and possibly merchandise, may receive
up to three months rent free.

12. Is the landlord prepared to give you a guarantee that he or she will not let any
other premises in the same complex to a direct competitor of yours?
If your proposed site Is in a small centre, you may not want direct competition moving in.
Negotiate this upfront and again ensure you have written confirmation of this arrangement.

13. ls the monthly rental linked to a turnover dause?

This means that your rent is determined as a percentage of your total monthly revenue.
Some landlords charge a flat monthly rental and then a top-up which is turnover linked.
Others charge a percentage of turnover only when you reach a specific turnover. Find out
the specifics of your monthly rental, by when It has to be paid and if the landlord requires
any reports from you to substantiate the payments.

M¼W
- -indiliii1::l1:iri0NM!U-i,it&i'iih-ill·i,,€~ l
1.&.4 LeaSe agreement - information required from
a 1ess
If you are in the b · or1.easing
. usm~ · Y?ur property, then pnor
• to a ee
lease bei
up, you will reqmre speafic mformauon from the lessee. Use the Lease ng drawn
mJ-,ian ,iq,umlf,.,. ksstt as your template for gathering all the in'iormation
agree.,,,,,,
.

Detllls required for lease agreement

1. General information
Individual/Full n a m e s : - - - - - - - - - - - - - - - - - - - ·
Identity number: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Residential address: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

Telephone numb ers:= ==== ===- -=---- ------ -

Company/CCJSole proprietor: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

Registration number:
Current physical addre-s-s:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

Business addres~s:=-~===========================================~
Postal address:

Telephone number_: ======== ======== ======== ======== ======== ====

Facsimile number:

Cell: _
E-ma:il: ~:~~~~~ ~~~=== ====== ====== ====== ====== ===
Contact details for the person responsible for payment of the rental:

2. Directors/Members/Owner
1. Full names:

Identity num:be:r: ~:~===== ======== ======== ======== ======== ====

Residential address:
=------~
4. Trade references
Name of company:
Name of company:
Account num ber :
Account number:
Telephone no.:
Telephone no.:

5. Present lan dlo rd Contact person:

Company name:
Premises address:
Telephone no.:

6. Sureties for Company/CC

Ide ntit y no.:
1. Full name:
Wo rk address:
Residential address:
Name & ID no. of spouse:
Married ANC/COP
Ide ntit y no:
2. Full name:
Wo rk address:
Residential address:
Name & ID no. of spouse:
Married ANC/COP

7. Documentation
app licable) and indicate wh at
ow ing documentation (where
Please attach copies of the foll
the box:
has been attached by tick ing
: Ide ntit y document(s)
D
Sole proprietor
: Founding statement
D
Close Corporation
: Resolution D
: CK document (CK1)
D
: ID documents of members D
Partnership : Ide ntit y document(s) D
: Partners ide ntit y document
s D
: Resolution D
Proprietary Limited
: Certificate of Incorporation
D
: Directors ID documents D
Trust : Letter or Resolution
D
Limited : Resolution D
:CM1 D
: Identity document
- - - - in my capacity as
----------
I,--------- tha t the above
- - - - - - - declare
------ - - - - - - t.- - - -
correc
Information Is bot h tru e and

Date
Signature
 rzwn titl.iJiHl#J::td,ii
l
For4'ffCl'UII

ITC check
Oves If yes, copy attached:

Credit Inform Oves 0 No If yes, copy attached:

Vericheque Oves 0 No If yes, copy attached:

0
Other checks: Oves 0 No Provide details:
0
Bank code requested: Oves 0 No If yes, copy attached: 0
References - Landlord
Institution Contact person Telephone no. Comments

Other references
Institution Contact person Telephone no. Comments

1.6.5 Sample lease agreement

Whenever you rent property you will enter into a lease agreement which governs the
relationship between the landlord and the tenant and lays out specific information
regarding occupation date, period of the lease, monthly rental and escalation thereof
etc. Only a long lease, one for ten years and longer has to be in writing and registered
against the title deeds of the land. All other leases need not be in writing. However,
it is advisable to enter into a written lease agreement to ensure that the terms and
conditions are agreed upon and recorded. The lease agreement also provides details
?f the tenant ~owance - what the landlord will do to the premises when preparing
it for occupation - and you should try to negotiate this prior to signing the lease.
Remembe~ that this lease agreement is an example and prior to signing a lease as
a prospect1ve tenant or as the landlord, you should seek legal advice. Have a lease
drawn up that suits your requirements.
 e 12% -= ;s .

I. Tenant
<In ser t ten ant nam e>
2. Reg. No JID NoJCK No.
istration no. or CK no. >
' <In ser t tenant company reg
3. 'Irading name
din g nam e if it diff ers from the one above>
, Sam e as above or <In ser t tra

4. Leased pre mi ses

me asu rin g < Ins ert size> m
2
1 Un it <In ser t uni t no. or add res s>

1 5.
Lease commencement date
mises are
me nce me nt dat e wil l be <In ser t dat e> . If the leased pre
5.1 Th e lease com ate or for
upa tion by rea son of the pre vio us ten ant 's failure to vac
not rea dy for occ cellation or
atso eve r, the ten ant shall hav e no rig ht to claim can
. any oth er rea son wh untiJ the first
com me nce me nt dat e of the lease shall be pos tpo ned
damages and the for occupation.
mo nth follow ing dat e upo n which the premjses are rea dy
, day of the
es pri or to trus
uld the ten ant hav e tak en occupation of the leased premjs lan dlo rd for
i 5.2 Sho to the
or to this offer bei ng pre sen ted
' offer hav ing bee n ma de or pri doc um ent wilJ be reg ard ed
, the n the ter ms and conditions of this
consid era tion exc ept tha t
bas is upo n wh ich the pre mis es are occupied, save and
as th~ onl y y by giving one
dlo rd sha ll hav e the rig ht to ter min ate the ten ant 's tenanc
' the lan
; mo nth 's notice to the tenant.

t 6. Period of lease years

end ure for a per iod of <In ser t lease per iod , i.e. one year, five
. Th e lease shall
me nt dat e.
etc > aft er the lease com me nce

7. Rental
1
Th e mo nth ly
/ 7.1 Gross mo o
mo nth by the ten ant in
, Th egr oss m nt for ren tal > excluding
res pec t of th rt ann ual escalation
me nce me nt date,

t rates
and/
 I

f' ··-
I 7.3 Parking . .
. bl b the tenant in respect of parkmg will be as follows·•
1
The monthly rental paya e Y
@ <Insert rand> per bay excl. VAT
. <Insert no> Coveredbays
' Insert no> 0 pen bays@ <Insert rand> per bay excl. VAT
<
The monthly rental for parking shall escalate at a rate of < Insert escalatio~ %> per 1
annum compounded on each anniversary of the commencement date dunng the
. period of the lease.
7.4 Other charges
In addition, the tenant will be liable for and shall pay the costs of all electricity,
water, sewerage and refuse utilised by it in or on the lea~ed prei:n_ise~, including its
share of costs of electricity and water consumed by the air-cond1t1onmg systems
serving the leased premises.
The tenant shall furthermore be liable for its pro rata share of common area
charges in respect of electricity, water, sewerage and refuse utilised in the common
area. The pro rata share shall be calculated on the ratio that the rentable area of the
premises bears to the total occupied rentable area of the property.

8. Use of the leased premises

The leased premises shall be used solely for the purposes of < Insert usage> and for
; no other purpose whatsoever.
: 9. Deposit or an irrevocable bank guarantee
, <Insert the amount for the minimum deposit payable or bank guarantee>
. 10. Surety

<Insert details regarding any required sureties>

terms of the lease, pay to the

.~y,y or duty which may be
ecorded that all amounts 1
I I

ments of I
will be in

. I
ermto an;
l
l
 ined herein.
Lease with the landlord on the terms and conditions conta
for a period of 14
Once received, duly signed, this o/Ter will remain irrevocable
of the signed o/Ter.
(fourteen ) days from receipt by the landlord
in writing, the essential
13.3 Should the landlord or its agent confirm its acceptance
the parties hereb y agree to be
elements of the lease will have been agreed and unication of
tance and/o r comm
bound accordingly. The only valid form of accep
will be in writing.
acceptance by the landlord or its agent of the o/Ter
possible as the premises are
• 13.4 Please ensure that the signed offer reaches us as soon as
by a signed and accepted Offer to
, not reserved for a specific tenant unless secured
, Lease.
14. Stamp duty/administration costs
istration fee for drawing up
, The tenant will be liable to pay to the landlord an admin
1 the lease and also the stamp duty payable thereon.

•r 15. Tenant installation

amount> (excluding VAT)
; The landlord shall provide an allowance of <Insert rand
t plans and cost estimates can
: towards the tenant's installation requirements. Layou
any tenan t installation work to be
: be prepared for consideration by both parties on
'. carried out. The landlord's standard specifications will apply.
!
. 16. Special conditions
1<List all extras that you will provide for the tenant such as>:

•a Extra lights to be added

! a Paint the area

1 a Steam-clean the carpets

a Fix leak in the roof at reception area.
. 17. Required documentation
r The following documents will~ submitted tQ the landlo
rd for the landlord's
records, in compliance with the F"m an~ ~ce Centr e Act (FICA):

If tenant is a company
of Companies
a) CMl (Certificate oflncorpora ....,,.~---~..,,;.:..v

..,~!JJ.f,_'" •
• b) CM29 (Register of Directon) s
=""·'""" panies
. c) CM22 (Notice of Registered
~,-,.,..,. CM29
ies ofidentity documents of

• sf-r.i'.~"',..~~.ri1u1.,.w~tton behalf of •

MIN
.·h)Verifi;tion of trade name and business address by supplying copy of a utilit }'
• bill, Telkom bill or the like.
' If tenant is a close corporation
a) CKI (Founding Statement and Certificate oflncorporation)
b) CK2 (Amended Founding Statement), ifapplicable
c) Resolution authorising lease signatory to sign same on behalf of the close
corporation
d) VAT registration certificate
e) Proof of income tax registration from SARS
{) Verification of trade name and business address by supplying copy of a utility
bill, Telkom bill or the like.
If tenant is a sole proprietor
a) Certified copy of identity document
b) VAT registration certificate
c) Proof of income tax registration from SARS
d) Verification of trade name and residential address by supplying copy of a utility
bill, Telkom bill or the like. _
enter
• I, _ _ _ _ _ _ _ _ _ _ _ _ _ being duly authorised, do hereby 1

into an Agreement of Lease on the terms and conditions set out herein.

__
: Signed at _ _ _ _ _ _ _ _ on _ _ _ _ _ _ _ _ _ _ 20_

: Signawre ___ ___ __ Signatory's name _ _ _ _ _ _ _ _ __

 =: 5

1.7 Bus ine ss buy -se ll agr eem ent che ckl ist
shoul d follow. Note that settin g
When sellin g a busin ess, there are a few steps that you
s away. Also, if a busin ess sits
a busin ess sale price too high migh t scare seriou s buyer
ption that there is some thing
on the mark et for too long, it migh t creat e the perce
their askin g price for the simp le
wron g with the business. Many seller s do not get
their busin ess for sale.
reaso n that they do not adequ ately prepa re
not, you shoul d alway s ensur e
Whet her you are think ing of sellin g your busin ess or
you are runni ng your busin ess
that you are prepa red to sell as this will ensur e that
some one may come along and
correctly. Of cours e, there is always the possib ility that
you are adequ ately prepa red,
make you an offer for your busin ess, in which case if
the infor matio n you need to
you are in a far bette r barga ining positi on and wilJ have
negot iate a good deal.
busin ess for sale (or the steps
The steps you need to follow in order to prepa re your
to purch ase a busin ess) are:
you shoul d work throu gh anyw ay if you are plann ing
Comp ile a busin ess prese ntatio n
Selec t an exper ience d busin ess broke r
Set a realis tic price
Discreetly mark et the busin ess
Quali fy buyer s
Nego tiate the sale
Comp lete due dilige nce
Raise finan ce

0 Draft and sign a buy/s ell agree ment

D Receive paym ents
D Hand over the busin ess
inclu de the follow ing infor matio n
When drafti ng the buy-s ell agree ment reme mber to
1. Details of the parties to the agree ment
ed in full
Ensure that both the buyer and the seller's details are provid
2. Preamble
th .
Include any specific •whereas" and therefore's• such as • whereas e seller ,s the owne r...
and • •••whereas the seller wishes to sell the business...• et~: ff

3 - Description of business
.
In this section you should be specific about what is for I . :: :usi~ess, the business
e clear desc ri::: ;!'~t
assets or just shares In the business. Provid being sold and
where necessary refer to an annexure at the end f th a com~~ete list. If
em;~ t tori
some certain assets or aspect of the business are e:clu ;~g;e rom e sa e, spec1f1cally record
the exclusions.
 "I

I M!&ii1¥&IHI HI Iin! llii1@:i1JJIJ---.______

-
._ Purchase prfct
Is made up of severalIddiffebrent elements, such a
Where the tota IPIn rice for the business
e a reakdown and Mc s
ul ment. stock trade, goodwlll and other assets, provIf stock In trade Is bel e P~r
comp uted.
eq P h Ing how the total sale price was f h t k h ng sold
category s ow s oc on and value and state as
rt of the agreement then provide an estimate o t e
when a full stock-take (Wltht~~t
:e final stock value will be determined on a specific date th
parties present) is carried out.
---- ---- -
s. Termsofpayment
that payments are due, Then r
Detail the deposits that need to be paid and the date
ce should be made. You may alsi~~:~
the balance due and by when payment of the balan Ude
be made.
bank account details Into which the payments should
6. Conditions, representations and warranties
to be fulfilled before the agree
There may be certain suspensive conditions that need h I di d ' to the cession ment
ting f
can be concluded. Such cond1
•t1ons could Include t e anh or assen
•
h • sufficient flo the
Ising
. h
pure aser, or t e pure aser ra
premises lease (where applicable) to the nance
• h'in a specIf'ie_d t'1me frame. Th e current owner (seller)
and producing relev ant guara ntees wit
ess and therefore has the right to sell
should warrant that he is the legal owner of the busin
and generally cover points where If
etc. All of these types of Issues should be Included here '
the conditions etc. were not met, it would render
7. Risk
the agree ment null and void.
-
signed by both parties until the date
From the time that the agreement is concluded and
in amount of risk Is involved. Generally
when the purchaser takes over from the seller, a certa
in with the seller and on handover all
the risk up to the business handover date would rema I
the type of risks that could arise and
risk would then pass to the purchaser. Clearly address
if such events occur.
what remedies or actions are required by the parties
8. Tax and other liabilities
for all taxes and other liabilities
Up to the handover date, the seller is generally liable
is responsible for payment of tax
payable by seller or the business, whereas the purchaser ded in the purchase price of the
be Inclu
such as VAT as a condition of the sale (as this would
s In the agreement.
business). List the liabilities of the partie
9. Non-competition
ant to the purchaser that he will not
This Is similar to a restraint of trade. The seller may warr
he Is selling within a certain kilometre
undertake a business the same or similar to the one
ls In this regard.
radius from the business for sale, Provide specific detai
10. Aaptanc, by th1 seller
Is being concluded and what constitutes
Stipulate the conditions under which the agreement
l«lptanc , by the purchaser,
11. Slgnatur11 111d wltntsses to the
two copies of the original
All Plrtf• to tht 1gr11mtnt must sign and date at 111st
lgwltnl'Nlnlntth (lo that •ach party may h1v1 en origi
nal signed copy) and both parties should
• • llgnlng of tht agrument copies.
infonnation inclu ding a
Chapter 1I Selling or buyin~ a bullneu, provides more e your
ypur b1.11111e11, buying guidelines and tips on how to valu