CPA Lease agreements- when may they exceed 24 Month?

In terms of the Consumer Protection Act, a lease agreement between a supplier and a consumer (as defined in that Act) may not exceed a period of 24 months. However, the following exceptions apply:

• where both parties are juristic persons;
• where the landlord is able to prove that the property being leased is not part of any of his business operations and that the lease is a “once off” transaction;
• where the lessee is exempt from the operation of the Act, i.e., if the lessee is a company, trust or close corporation with a turnover or asset base over R2 million; or
• where it can be shown that there is demonstrable financial benefit to the lessee in a lease that extends longer than 24 months.