Licences

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  • Licences
    • Protection by Constructive Trust
      • Binions v Evans - the party buys subject to the licensee's rights and pays a reduced price.
        • Denning: constructive trust
        • Smith: could be criticised as the right recognised here was not actually proprietary so it isn't strictly analogous to licences.
      • Chattey v Farndale - will only be upheld where the purchaser promises to respect the estate contract
    • Types of Licence
      • Bare Licence
        • Simple permission to enter lad which can be revoked at any time, but the licensee must be given reasonable time in which to leave
      • Contractual Licence
        • Irrevocable
          • Verral v Great Yarmouth - National Front & pavilion. Specific performance was ordered as damages would be inadequate (there was no alternative venue)
          • Winter Garden Threatre - Lord Greene (CA) licence was part of the contract and subject to normal contractual rules.  (HL) not part of the contract -intended to be revocable.
            • Revocable
          • Hounslow v Twickenham Garden developments D completing garden work on C's garden and C wanted to evict.  Claim failed as D should not be able to use equity to break his contractual obligations
        • Revocable
        • Hardwick v Johnson - pay £7 p/w to purchase price (3% return for the mother p/a).  Little legal justification for enforcing the bargain indefinitely
        • Wood v Loadbitter - a licensor can terminate even if doing so will breach the contract as the licence operates separately to the contract.  There may be remedy for breach but that is all.
    • Creation and Transfer of Licences
      • Creates a personal right
      • No formality requirements necessary
      • Frustration will apply
        • Krell v Henry
      • Obligations may be implied into the licence - not a normal practice
        • Wettern Electric - implied a term that the property be "fit for use"
    • Enforcing Rights Against Third Parties
      • The licensee as against a purchaser
        • A licensee can usually enforce rights against the licensor but there is no privity of contract with a purchaser - if they ARE bound then this would be found in equity.
        • Early Cases
          • King - HL: a licence to put an advert on the wall did not bind the lessee from the licensor.
          • Clore - front of house selling refreshments - thought they had a lease. Was actually a licence and personal contracts are not capable of binding
        • Modern Development
          • Errington - the successor in title was bound.  There was an estate contract.
            • Denning: infusing equity gives licences a force of their own.  Only a purchaser for consideration without notice would overrule.
          • NPB v Ainsworth - equity will only bind where there is a proprietary interest.  The deserted wife's equity isn't an interest, and certainly not capable of binding.
          • Ashburn Anstalt v Arnold - the licensee sells subject to a licence to retain the shop rent free until re- development.
            • LRA 2002 Section 116 - possible rout for tackling Ashburn:
              • A mere equity is capable of binding purchasers. Equitable remedy is available for those holding a contractual licence so it could be a mere equity (restores Ainsworth)
            • Fox: you cannot effect successors to title
        • Statutory Development
          • LPA 1925 Section 4(1) - an equitable interest will only be validly created when...
            • LRA 2002 Section 116 - possible rout for tackling Ashburn:
              • A mere equity is capable of binding purchasers. Equitable remedy is available for those holding a contractual licence so it could be a mere equity (restores Ainsworth)
      • The licensee as against a trepasser
        • Hill v Tupper - right for boats on the river - not enforceable for trespass
          • Manchester Airport v Doulton - if in exclusive possession then they might find
      • The licensee for nuisance
        • Hunter v Canary Wharf - licensee generally cannot sue, but you may be able to if you are in exclusive possession

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