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Licences And Leases Notes

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LICENCES & LEASES

*

*

Creation
? Bare & contractual licences

* no formalities(not rights in rem) +can't be registered under LRA + don't constitute overriding interests
? Licence coupled w/an interest = right in rem? formality rules apply (a deed in writing) Types

1. Bare
? Explicit/tacit gratuituous permission to be on the land
? Duration
- licensor states a limit -once expired, licensee is a trespasser
- licensor can revoke b/f expiration but must announceit so that it takes effect after reasonable delay
? unclear if must be enough time to make other arrangements or just to pack up
- operates in personam- can't bind TP

2. Contractual Licence
? A's obligation may be a. express contr. term b. implied contr. term (as to give business efficacy to more explicit aims of contract) (Tanner v Tanner)
? Contract may give B a. the right alone b. the right enabling B to perform obl. which contract imposes on him (B employed to work A's farm)
= NB: contract may be b/w A&B, or A &TP for B's benefit - 1999 Act applies.
? Duration & Licensee's rights against Licensor a. Licensee must keep within confines of the licence b. Licensor can terminate in acc w/contract = no problem c. Licensor gave open ended permission ? can terminate prematurely w/notice only if: (i) It's in acceptance of early repudiatory breach by licensee (ii) It's in breach of terms of contract ? licensee in principle has 2 options a) accept breach & seek damages for loss b) affirm the contract, maintaining the obl. for him & licensor ? can only do this if can continue performance w/out co-op of licensor
? May seek injunction to prevent licensor's early breach or specific performance to enforce it though court prefers injunction o Hurst v Picture Theatres - licensee can have equitable relief (injunction, spec. performance) against breach preserving landowner's obligation to allow trespass o Winter Garden Theatre v Millennium Production - licensee who refused to accept unauthorised repudiation of a licence is entitled to protection of injunction or spec. performance just like a licensee who received no notice of revocation
? Effect on TPs
- Licenseeis in physical control of licensor's land =TP is under duty not to interfere, if he does, licensee can claim possession
- Purchaser, if bound, through equitable interestonly but modern authorities say not bound at all
? Licensee's rights against TP who' has been given inconsistent right by Licensor

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