Occupier has permission to use the premises, but has no estate or interest in it
Lease
Licence
Exclusive possession
Bare Licence
Licensee gives no valuable consideration
Valuable consideration given
Can be revoked anytime
Licence has to run its course otherwise breach of contract
E.g. Entering a shop
Contractual licence
A license
Common law has to run its course otherwise breach of contract
Will not bind purchaser to freehold reversion
Licence cannot be bought and sold
Section 52 (3) Law of Property Act 1925
Licensee has no right to remain if licensor sells land
Wells V Kingston 1875 - Ship owner and Dry dock owner
Distinction between lease and licence - Occupier occupied furnished room
Lace v Chantler
Walsh v Lonsdale 1882
Antoniades v Villiers 1988
Facchini V Bryson 1952
Street v Mountford 1985
Heslop V Burns 1974
Street v Mountford 1985 - Occupier occupied furnished room
Presumption in favour of a lease
Form of agreement not substance of agreement
Substance of agreement not form of agreement
Presumption not in favour of a lease
Did not have exclusive possession
AG Securities v Vaughan
National car parks v Trinity Development Co 2001
Wells V Kingston 1875
Exceptions: No intention to create legal reltions - Old man allowed couple to live rent free
Service Occupancies
Licence if employee occupying property for better performance of job
Landlord and Tenant relationship
Licence if employee is not occupying property for better performance of job
Multiple sharing arrangements
By granting rights of shared occupation and reserving right not to move other occupiers into premises Landlord creates a licence
By granting rights of shared occupation and reserving right to move other occupiers into premises Landlord creates a licence
No individual occupier has exclusive possession
All individual occupiers have exclusive possession
Multiple sharing arrangements - Four bedroom flat - four occupiers
Four occupiers of a four bedroom flat had exclusive possession
Four occupiers of a four bedroom flat
Seperate licence agreements
One lease
Held to be one single lease for a couple occupying flat even though agreements stated to be two seperate licences
Antiades v Villiers 1988
Does the owner retain degree of control incompatible with occupier having exclusive possession
Provision of services
Sham clauses
Business premises
Lodger
Sham clauses - Couple occupying flat
Antoniades v Villiers 1988 - Couple occupying one bedroom flat
Owner reserved right to himself, not realistically exercisable
Owner reserved right to himself, realistically exercisable
Owner did not reserve right to himself, not realistically exercisable
Retention of key by Owner
Denies exclusive possession
Only licence if key enables owner to provide services
Lease if key enables owner to provide services
Aslan v Murphy
Retention of key by owner
Business Premises
Same principles apply
Same principles do not apply
Courts more willing to find leases
Courts more willing to find licences
Licence - Business premises
Owner retained some control