lease and license problem question

Secondly, in McDermott v McDermott [2008] a couple relied upon a representation by returning to Northern Ireland, leaving behind their established lives in America. rights reserved. was a sham because it had never been exercised and because there was evidence of an intention that the parties were to have exclusive possession. Philip & Brenda: Where residential accommodation is occupied by two or more persons the occupiers may be licensees or tenants of the whole or each occupier may be a separate tenant of part. had warned. Before advising the parties, it is important to note that we will be dealing with Land law applying to Northern Ireland because the property is situated in Belfast. The oft-quoted maxim, "the law abhors a forfeiture" applies to leases, not licenses. There may be some grey area from time to time, but usually the division will be easy to discern with proper consideration. This essay question is o. 1. Academia.edu no longer supports Internet Explorer. In fact, estoppel licences are only one possible remedy that the court might grant. I will be advising Laura and Trevor on their respective legal positions. Ask the right questions and read the fine print of a lease agreement to get the best deal possible. To browse Academia.edu and the wider internet faster and more securely, please take a few seconds toupgrade your browser. would only be able to claim damages. Nonetheless, it is not certain whether G would indeed have this right to exclusive possession. A right was inferred to enter the premises in order to use fixtures and fittings. Docmerit is super useful, because you study and make money at the same time! The main difference then is that leases give an individual the right to control property, while licenses only give an individual the right to act on it. Leases are more important as the rights become attached to the land. The written agreement also contained a statement to the effect that Martin was entitled to introduce an additional occupant into the second bedroom in the apartment at any time. The facts of this case are very similar to the one of Fifoots in which from the wording, it may be implied that Maitland had attempted to expressly state that this interest was merely a licence. Sometimes, courts have difficulty distinguishing leases and licenses. Lastly, in order for the claimant to be given a remedy under proprietary estoppel they must come to equity with clean hands (Murphy v Raynor [2011]). This essay question is o . In December 2018, Trevor (a friend of Martins who had been living in Canada) decided to return to Northern Ireland. University Of Arizona In the case of Delta International Ltd v Syam Sundar Ganeriwalla, a dispute arose between the parties as to whether the agreement between them was a lease or that of leave and licence. This doctrine will operate if Trevor relied upon a representation to his detriment making it inequitable for Amanda to insist upon her strict legal rights (Crabb [1976]). No answer to a question is legal advice and no lawyer-client relationship is created between the person asking the question and the person answering it. It confers exclusive possession of land. A lease by any other name is still a lease, unless it is a license. A license to occupy real property, on the other hand, is merely a privilege to use the real property and no property estate is created. Answer a few quick questions and well show you your top credit card options. Skip the searching and find your next bank in minutes with BankMatch. relation to the flat, reasonable reliance on the representation, and detriment by reason of this reliance. elements (Thorner v Major): a promise/representation made by P which stated that M will acquire some right in - Uniondale Office, Do Not Sell or Share My Personal Information, Copyright 2023 MH Sub I, LLC dba Internet Brands. editorial integrity, Proudly created with. The topic scope is pertaining to Lease and Licence. Last year Abe and Bee, a young couple, moved into a large, one bedroom flat above a shop in Bow. 2003-2023 Chegg Inc. All rights reserved. Sorry, preview is currently unavailable. Q6 - You now need to carry out research about the different universities/colleges you are interested in applying to by finding the answers to the areas you have outlined in your responses to questions 3 and 5 above. Were transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. The offers that appear on this site are from companies that compensate us. Martin exclaims Who the devil are you? In a closed-end lease, the leasing company sets a total price based on their estimate of the vehicles depreciated value. Choose the best home insurance company for you. Conversely, licensing agreements are akin to a . the issue of actual occupation. Leases & Property Management Chapter Exam. IFRS 16 requires an entity to determine whether a contract is a lease or contains a lease at the inception of the contract. How to answer a Lease/License Problem Question. It is suggested that Lauras occupancy began when she moved into the apartment in October 2018 and was intended to last until October 2022. Leasing a vehicle can be a good choice for drivers interested in driving the newest vehicle options without investing in buying a car. The important recent judgment of the honble Supreme Court on the distinction between lease and licence is Bharat Petroleum Corp. Ltd. v. Chembur Service Stationwherein the court observed that Licences can be of different kinds. Licensors usually maintain direct supervisory power over the use of the licensed premises, unlike leased property. This is because Ms The tenant has no chance to correct the problem and must leave. Exceeding your lease mileage allowance will cost you. Oxford Dictionary of Law defines it as Permission to enter or occupy a persons land for an agreed purpose. This essay question is o . The topic scope is pertaining to Lease and Licence. The number of problems that are unexpected B. Lease is much extensive than that of licence, and it confers a great amount of right to the transferee which cannot be extinguished so easily. In the case of Mrs. M.N. Clubwala v. Fida Hussain Saheb, the Supreme Court dealt with the question that whether an agreement creates between the parties the relationship of landlord and tenant or merely that of licensor and licensee and held that the decisive consideration is the intention of the parties. That. Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. Enter Without Proper Notice. Martin proceeded to convert the house into two self-contained apartments, one on the ground floor and one on the first floor of the property, with separate access points to each. Premises Tenancy Act, 1956. Understand your mileage allowance and try to anticipate your driving habits during your lease, as any long road trips might cost you. Click here You can rarely negotiate this number because lending institutions typically set it. It also consists of various journal articles from LexisNexis and ProQuest which are summarised so you don't have to read the entire journal articles yourself. actually a lease. By using our site, you agree to our collection of information through the use of cookies. Because of this, license agreements are primarily used for shorter-term agreements involving storage, office, and small-scale retail spaces. Overall, it is evident that satisfying the equity is an exercise in judicial discretion (Conway (2016)) and this was very clear in Davies v Davies [2016] where the court of first instance awarded 1.3million to the claimant, which was later reduced to 500,000 by the Court of Appeal. When a person gets possessory right and the right to enjoy the property, it would be a lease unlike a licence. least damages for breach of contractual licence. Leasing companies determine the residual value, though you can get an estimate on Kelley Blue Book. UpCounsel accepts only the top 5 percent of lawyers. The claimants interest was expressly said to be a licence. There are a number of major ways that leases differ from licenses, but the primary one pertains to the matter of control. As it is still not certain whether the elements of fixed term or exclusive possession are satisfied in this case or A lease is a contract between a tenant and a landlord that provides the tenant with exclusive interest in the property. The courts would In Union Square Park Community Coalition, Inc. v. New York City Department of Parks and Recreation, the Court of Appeals of New York recently held that an agreement between the City and a seasonal restaurant located in Union Square Park, which retained many characteristics of a lease, was in fact, a license. David Smith. A. But, there is another provision or legal principle which at sometimes is confused with the concept of lease i.e. A license is permission from the owner to a licensee to do something on the owner's property. The decisive consideration is the intention of the parties, but the intention must be gathered on a true construction of the agreement and not merely from the description given by the parties. If not registerable voidness rule has no effect whatsoever, in registered land there is a very small opportunity for this under s116 but more importantly in registered we deal with the potential . Paying too much money upfront Car dealers advertise low monthly lease payments on new vehicles, but you may have to pay several thousand dollars upfront to get that affordable payment. 7. 8. b. In contrast to Lauras contractual arrangement, Trevor never entered into legal relations with Martin and was merely given a bare licence to occupy the shed. this post may contain references to products from our partners. For Further Details Contact: A document, which expresses the intention of both parties or of one party to create license will nevertheless create tenancy if the rights and obligations enjoyed and imposed satisfy the legal requirements of tenancy. In return for rent and/or a lump sum payment (a "premium"). A lease can either be a fixed term lease (Lace v Chandler- until the end of war converted into a fixed term) or a periodical lease (Prudential- implied periodic tenancy based on regular payment), which, certainty of term is fundamental for both. We are an independent, advertising-supported comparison service. All Rights Reserved. There must be a consideration fixed for lease for lease that may be in the form of: a) money; b) moneys worth such as a share in crops; c) service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee. In 2010 Cleaneze plc had entered into a forty year licence of the flat with Dot, Bees mother who was the manager of the launderette. Looking at the substance of the agreement, it is clear that there is a certain beginning and a certain ending to Lauras occupancy (Lush LJ in Marshall v Berridge (1881)). bedroom for the first two weeks of the licence, so that the courts will not construe the provision as a sham, but that he We continually strive to provide consumers with the expert advice and tools needed to succeed throughout lifes financial journey. This means that the maximum relief that Trevor would get would be what he expected to get from Martin; to live in the shed for as long as he wished. A lease can commonly be found where an agreement satisfies the requirements laid out by Lord Templeman within Street v Mountford [1985] which includes exclusive possession; for a term certain; at an agreed rent. Leasing laws require your lessor to tell you whether and how wear and tear will be assessed when you return the vehicle. It would be easier to understand this after looking at some of the decision/case laws of Supreme Court. Noting the uncertainty, let us consider the consequences in the event that a lease is indeed found. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Irrespective of whether the parties call an agreement a "license" or a "lease," dispositive indicia include the extent to which each party provides essential services (maintenance, repairs, utilities, cleaning, security, etc. Trevor was having difficulties in finding somewhere to live and he inquired of Martin whether the ground floor apartment was vacant. he may be able to claim an overriding interest under actual occupation (Land Registration Act 1925 s (1) g) or at will then move out and Martin will thenceforth be the sole occupant of the flat. Licensors usually maintain direct supervisory power over the use of the licensed premises, unlike leased property. This would give him a right in rem Please upgrade to Cram Premium to create hundreds of folders! . This is where the party has the legal right to keep the world, including the landlord, out of the property and therefore creates a lease, By multi-occupancy agreements the parties merely have EO and therefore no lease, A -B = lease agreement despite it being labelled as a licence, 5th requirement a problem: doesn't give a start/end date just told live there for life, 6th requirement needs more info to determine if they have EP as it says nothing about how much control she has, Not in writing form so no periodic tenancy, and M remains as a mere licence with no control over land so A can control her rights and enforce M's notice to quit, Don't need to go through if there's a lease for flat 3 as V wants property repaired - needs to use S. 11 LL and T act 1985, NO CAPABLE GRANTOR of lease to V as KW are merely a licensee as they took a licence agreement from A, V wouldn't be successful if they tried to invoke S 11 with A, V HAS A NON-PROPRIETARY LEASE IS ENFORCEABLE ONLY AGAINST KW AND NOT OUTSIDE WORLD. What is preventative maintenance intended to reduce? Add to folder Many implementation challenges have become day-to-day application issues. Since the apartment is suitable for sharing due to its two bedrooms, it cannot be said that the terms of the reserved right are wholly unrealistic andclearly pretences (Aslan v Murphy (1990)). Conversely, licensing agreements are akin to a "personal privilege," and generally just give the licensee permission to use the premises, or a portion thereof, sometimes on a non-exclusive basis. For instance, if your car is worth $20,000 and should be worth $15,000 at the end of the lease, you will have a lower payment than if you choose a $20,000 car expected to be worth $10,000. Proudly created with Wix.com, First Class Land Law 2045 2020 Take Home Exam (Awarded an 80) Problem Question Answer, 2022 QUB The Verdict. Find an expert who knows the market. Where there is no transfer of interest there is no lease.Further, if an option is given to the lessor by the lessee himself to resume the leasehold, it is a personal covenant and does not create an interest in the land. What is the agreement called? imposes onerous repair obligations on landlords of leased property. Compare cards in one place to find the one for you. 1. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Date. That means, if an owner of a land grants permission to use the land without any exclusive, the document should be construed as that of a licence. The mere use of words appropriate to a lease will not preclude its being held a license; so even a document referring to rent maybe a license. All licences cannot be treated on the same footing. Subject Matter of Lease The subject matter of a lease is a specific immovable property such as land, houses, factories, shops, minerals, buildings etc. Additionally, in Aslan v Murphy the agreement Adding to this, Laura could be regarded as being in exclusive possession because she has physical control of the apartment and can effectively call it [her] own (Mcbride J in Car Park Services Ltd [2018]). Thirdly, this was clearly a detrimental reliance which makes it inequitable to deny Trevors claim because he prejudiced himself by incurring expenditure through the renovations he carried out. After the creation of such an interest, a tenant or a sub-tenant is entitled to remain in possession thereof until the lease is duly terminated and eviction takes place in accordance to law. Bankrate follows a strict editorial policy, so you can trust that were putting your interests first. information therefore would be needed concerning the payment arrangement between the parties to see which Firstly, although there is no evidence of strong and repeated representations as in Gillet v Holt [2000], it is obvious that Trevor was given a positive assurance by Martin in December 2018 that he could live in the shed as long as he wished. It could be A lease of immovable property is a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms. Section 52 of the Easements Act, 1882: License, Defined. How and when payment should be made. A final consideration to make is that a party cannot turn a lease into a license by merely calling it that; the terms of the agreement and the nature of control are the main determining factors. personal rights against the initial licensor. Download Free PDF licences & leases - problem question II Mark Pummell Last year Abe and Bee, a young couple, moved into a large, one bedroom flat above a shop in Bow. Flower; Graeme Henderson). A lease is both transferable and heritable, a sub tenancy can be created by the tenant and on the death of the tenant, the tenancy can be inherited by his/her legal heir, whereas, licence is neither transferable nor heritable. However, the courts have said that the real focus of this doctrine is concerning the issue of unconscionability May 2013. The licence does not grant exclusive possession. An agreement under which a lease has already been granted for a consideration, whether it is a monthly rent payment or it is a one-time payment for a fixed period lease, a lessor cannot terminate the agreement, and escape payment obligations, or if it was a one-time payment, ask to reverse the lease and request a refund of the amount paid, on . whether the promissory estoppel claim would work, it shall be considered what rights M would have under a licence. The oft-quoted maxim, "the law abhors a forfeiture" applies to leases, not licenses. In this case a commercial premises was sub-leased for three years, and the claimant was given what was described as a licence. subject matter experts, In this case, a son was encouraged to build a bungalow for himself and when his fathers trustees sought possession of the bungalow, the court held that the sons expenditure at his fathers encouragement raised an equity which was satisfied by granting the son a licence for life. Irrespective of whether the parties call an agreement a "license" or a "lease," dispositive indicia include the extent to which each party provides essential services (maintenance, repairs, utilities, cleaning, security, etc. The case of Walsh v Lonsdale involved a periodic yearly tenancy. There are five determinants to our analysis: tenure/time; control; cost; condition (habitability);s and immigration status. Unconditional Quit or Vacate Notice: Use when a tenant causes severe, repeated or dangerous problems. Duration of Lease The lease need not be for fixed period but its duration should be definite. In fact, a license can be conferred upon a party without either party ever meeting. Leasing a vehicle is a big commitment, but it can pay off if you know what youre getting into. Leases found s. 205 LPA 1925 but rules embedded in common law. Martin proceeded to convert the house into two self-contained apartments, one on the ground floor and one on the first floor of the property, with separate access points to each. This was held by the Supreme Court in C.M. Both the provisions look similar, then what make them different is a very important question, which has to be resolved, and it is abstruse to do so. Nonetheless, although P himself admitted the This is a Premium document. Oxford Dictionary of Law defines it as Permission to enter or occupy a person's land for an agreed purpose. If there is no lease but permission to occupy then Fifoot will more likely have a licence. Therefore, in order to fulfil the reasonable expectations of both parties, the court may allow Amanda to acquire vacant possession of the shed but require her to reimburse Trevor for any improvements made as in Dodsworth v Dodsworth [1973]. Although this interest would not grant him a right in rem, c. Sorry, preview is currently unavailable. This case held that an agreement which confers exclusive possession at a rent for a term will create a tenancy. Preparation is key. When he returns, he finds Geraint, whom he had not Bankrates editorial team writes on behalf of YOU the reader. Lease versus licence It is a component in leases that grant a tenant in a lease possession that is so exclusive as if she owns the land to the exclusion to the world include the landlord means that the plaintiff must be in full control of the property and be able to exclude all others from the property if he/she wanted to including the landlord. with a licence agreement, telling Martin that he is prepared to let the flat only on the stated terms. Nuisance and the rule in Ryland v Fletcher, Law of Contract & Problem Solv (LAW-22370), Banking and Debt Finance Law and Practice, Year 3 Junior Medicine & Surgery (MEDI30021), Mathematics for Computer Scientists 1 (CS130), Introduction to business management (10edition), Introduction to English Language (EN1023), Audit Program for Accounts Receivable and Sales, Cognitive Area - Psychology Revision for Component 2 OCR, 3. Note* we only accept Original Articles, we will not accept As the licence is lease, then G would be entitled to claim exclusive possession of the property, consequently requiring M to leave the periodic tenancy may be implied. The term lease and license are defined under Section 105 of the Transfer of Property Act and Section 52 of the Indian Easements Act respectively. Nevertheless, courts are willing to strike such clauses out by assessing the wider circumstances of the case as shown in Antoniades v Villers [1990] where it was held that the power reserved to the landowner. Ramachandra Rao, stating that the difference between a lease and a licence is to be determined by finding out the real intention of the parties as decipherable from a complete reading of the document, if any, executed between the parties and the surrounding circumstances. Now is my chance to help others. Fee simple absolute in possession (freehold) 2. But before you move forward, compare the residual value to the cars retail value to determine if youre getting a good deal. Lease grants an estate in land, it's a property right, Grantor must have estate in land --> can't grant more than you have {PER LONDON v NIDAI}, {clear channel v Manchester} land must be clearly defined, case = posters uncertain as could be put anywhere, Presume certainty as it says they agreed in Jan 2017 but need spec. and statutory rights under the Rent Act 1977 which would enable him to remain in the property. Further we demonstrate that the position of tenants has become in some ways more precarious in the last 30 years in terms of the ease of eviction and, for private tenants, for rents. For those looking for a new affordable alternative to renting and something more adventurous than what is provided by a local lettings agent, then maybe being a Property Guardian is truly the exciting and cheaper alternative. Money market accounts are similar to savings accounts, but offer some checking features as well. Become Premium to read the whole document. or not M has exclusive possession of the property. Leases generally grant an exclusive interest in real property. Where, on point of intention the document is ambiguous, the question is to decide in the context of the surrounding antecedent and consequent circumstances, and parole evidence. Similar view was also held by the Supreme Court in Achintya Kumar Saha v Nanee Printers, where an issue relating to tenancy and licence was sorted out by the court referring to the intention of the parties, and it was held by the court that intention of the parties who are forming an agreement becomes the deciding factor to conclude the real nature of the agreement made. This is the most common type of lease. Residential tenancies law in England are complex because of an overlay of (changing) legislation on the top of common law principles, and sometimes different law for private and social tenants. Addendum to Commercial Lease Agreement Extension. $14.45 Anything else is a licence. Nonetheless, even though an express fixed term or periodic tenancy is not granted, there may be It was further held by the Supreme Court in Khalil Ahmed basher Ahmed v Tufelhussein Samasbhai Sarangpurwala, that if an interest is created in an immovable property which entitles a transferee to enjoy it without any interference, the document should be construed as that of a lease agreement. A lease is a conveyance of exclusive possession of specific property usually in consideration of the payment of rent, which vests an estate in the grantee, [while] a license, on the other hand, merely makes permissible acts on the land of another that would otherwise lack permission. Martin lived in the first floor apartment. All of the following statements regarding leases are true except: a. Ricky v. New Delhi Municipality, AIR 1962 SC 554 # Thakur Prasad v. State Iron and Steel Co. Ltd., AIR 1976 Pat 156 # Peter Alex d Souza v. Prithi Paul Singh, AIR 2002 Bom 471 # Rig v. Morris, (1863) 32 LJ (MC) 245 # Raam Nivas v. Municipal Board Nawabganj, AIR 1976 All 241 # C.M. is a lease. Articles Already Published in other websites. If your vehicle has superficial damage, paying for touch-ups before your assessment may be worth it. Sometimes, there arise some situations, which abridge difference between them.
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