Types of Licence
• 3 issues:
– What different types of licence are there?
– Can they be enforced against the licensor?
– Can they be enforced against third parties?
• Licences:
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Bare licence.
Licence coupled with an interest.
Contractual licence.
Licence by estoppel.
Bare Licence
• Granted gratuitously (no consideration)
• Express
– Invite friend to house.
• Implied
– Approach front door to house.
– Implication can be rebutted.
Bare Licence
“When a householder lives in a dwellinghouse to which there is a garden in front and
does not lock the gate…it gives an implied
licence to any member of the public who has
lawful reason for doing so to proceed from
the gate to the front door…and to inquire
whether he may be admitted.”
Diplock LJ in Robson v Hallett [1967] 2 Q.B.
939.
Bare Licence
Enforcement against original licensor
• Can be revoked by licensor at any time.
• Must allow reasonable time to leave the
property.
• Expression “f*** off” term of abuse rather than
revocation of licence. (Gilham v Breidenbach
[1982] R.T.R. 328)
Bare Licence
Enforcement against successors in title
• Personal interest between licensor and
licensee.
• As can be revoked at any time by
licensor can also be revoked at will by
successors in title to the licensor.
Licence coupled with an
interest
“ A licence to go on land to sever and
remove trees…are accepted examples
of a licence coupled with an interest.”
Meggary J in Hounslow LBC v
Twickenham Garden Development Ltd
[1971] Ch.233.
Licence coupled with an
interest
Enforcement against original licensor
• Can’t be revoked as long as underlying
interest continues.
Enforcement against successors in title
• Binding on successor in title if takes the
property subject to the underlying interest.
Contractual licence
• Granted by contract (valuable consideration)
• Short term licences:
– Entry to cinema, football match, car park.
• Long term licences:
– Occupy house/flat/shop.
• Tanner v Tanner [1975] 1 WLR 1346
• Chandler v Kerley [1978] 1 WLR 693
• Horrocks v Forray [1976] 1 WLR 230
Contractual licence
•
•
•
•
•
Enforcement against original licensor
Licence for specified period cannot be
revoked until contractual period has expired.
R v Inhabitants of Horndon-on-the-Hill (1816)
4 M & S 562.
Wood v Leadbitter (1845) 13 M & W 838.
Hurst v Picture Theatres Ltd [1915] 1 KB 1
Winter Garden Theatre v Millenium
Productions [1948] AC 173.
Contractual licence
Enforcement against successors in title
• Traditional position:
– Same as any other contract. Not binding
on successor as not a party to the contract.
– Benefit of a contract can be assigned but
the burden can’t.
– Clore v Theatrical Properties Ltd [1936] 3
All E.R. 483.
Contractual licence
Enforcement against successors in title
• Elevation to an equitable interest in
land?
– Errington v Errington [1952] 1 KB 290
– Denning LJ: contractual licence gave rise
to an ‘equity’ in favour of the daughter-inlaw that binding on successors in title.
Contractual licence
Enforcement against successors in title
– Binions v Evans [1972] Ch.359.
– Denning MR: Contractual licence binding
on purchasers because they had acquired
the property with notice of its existence
(unregistered land)
– Other judges: same decision but for
different reasons.
Contractual licence
Enforcement against successors in title
• Re-assertion of traditional position
– Ashburn Ansalt v Arnold [1989] 1 Ch. 1
– Reviewed cases where contractual
licences held to be equitable interest in
land and decided that incompatible with
earlier House of Lords cases.
Contractual licence
Enforcement against successors in title
“Before Errington the law appears to have been
clear and well understood. It rested on an
important and intelligible distinction between
contractual obligations which gave rise to no estate
or interest in the land and proprietary rights which,
by definition, did. The far-reaching statement of
principle in Errington was not supported by
authority, not necessary for the decision of the
case…the Errington rule was neither practically
necessary nor theoretically convincing.”
Fox LJ in Ashburn Ansalt v Arnold
Licence by Estoppel
What is an ‘estoppel’?
“Equity…prevent a person insisting on his
strict legal rights…when it would be
inequitable for him to do so having regard to
the dealings which have taken place between
the parties.”
Denning LJ in Crabb v Arun District Council
[1976] 1 Ch 179
Licence by Estoppel
• Remedy under doctrine of proprietary
estoppel.
• Requirements of proprietary estoppel:
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–
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A representation
Reliance on the representation
Inwards v Baker [1965] 2 QB 29.
Act to detriment in reliance on representation.
Re Basham [1986] 1 WLR 1498
Licence by Estoppel
Enforcement against original licensor
• Plimmer v Wellington Corporation
(1884) 9 App Cas 699
• Pascoe v Turner [1979] 1 WLR 431
– Representation: House & contents yours.
– Reliance: remained in house.
– Act to detriment: spent savings on
improvements.
Licence by Estoppel
Enforcement against original licensor
• Matharu v Matharu (1994) 68 P&CR 93
– Wife acted to detriment in mistaken belief
house belonged to husband.
– Held: case of proprietary estoppel but only
granted licence to remain in house for life
on basis take responsibility for
repairs/financial outgoings.
Licence by Estoppel
Enforcement against original licensor
• Sledmore v Dalby 91996) 72 P&CR 196
– Relative circumstances of the parties
– Proportionality between remedy &
detriment intended to avoid.
– Not inequitable to allow defendant’s
expectations to be defeated & order for
possession made against defendant.
Licence by Estoppel
Enforcement against successor in title
• Greasely v Cooke [1980] 1 WLR 1306
– Held: Case of proprietary estoppel. Had
right to remain in house for as long as
wished.
– BUT successors in title not purchasers for
value (inherited property)
Licence by Estoppel
Enforcement against successor in title
Unregistered Land
• ER Ives Investment Ltd v High [1967] 2
QB 379
– Estoppel an equitable interest that not a
class on Land Charge
– Therefore not void for non-registration &
binding on purchaser with notice.
Licence by Estoppel
Enforcement against successor in title
Registered Land
• S.116 Land Registration Act 2002
“It is hereby declared for the avoidance of
doubt that, in relation to registered
land…an equity by estoppel…has effect
from the time the equity arises as an
interest capable of binding successors in
title .”