Question 4

N/B - This question is strictly based on South African business transaction law.

X, who owns several properties, tells his friend that several of his lessee's fell into arrears with their rentals and that he (X) has been battling with the collection of the arrears. X's friend informs him that he (X) acquires a tacit hypothec over certain movable property on the rental premises as long as the lessee is in arrears. X requests you to draft a table which he can use as a guideline for excising his tacit hypothec over the movable property on the premises. The following aspects must be addressed in the table:

• Column 1: What is covered/not covered by the lessor's tacit hypothec?
• Column 2: Extent to which the lessor's tacit hypothec applies to movable goods on the premises/requirements (and examples of all).