Licences to Occupy Land
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Durham E-Theses Licences to occupy land Rendell, C.A. How to cite: Rendell, C.A. (1988) Licences to occupy land, Durham theses, Durham University. Available at Durham E-Theses Online: http://etheses.dur.ac.uk/6403/ Use policy The full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that: • a full bibliographic reference is made to the original source • a link is made to the metadata record in Durham E-Theses • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders. Please consult the full Durham E-Theses policy for further details. Academic Support Oce, Durham University, University Oce, Old Elvet, Durham DH1 3HP e-mail: [email protected] Tel: +44 0191 334 6107 http://etheses.dur.ac.uk LICENCES TO OCCUPY LAND A. Rendell Introduction 1 Section I The Development of the possessory licence: (a) Development up to ERRINGTON v ERRINGTON 6 (b) Development after ERRINGTON v ERRINGTON 33 Section II Licences and legislation controlling the relationship between landlord and tenant 62 Section III Licences and the Limitation Acts 93 Section IV Licences and informal family and quasi-family arrangements for occupation of property: (a) The need for licence concepts 116 (b) The position of the licensee at common law 134 (c) The intervention of equity 138 (d) Contractual licences: (i) Irrevocability and the original licensor 141 t i H ^ T rroTrnnah i 1 i fw anrl -t-V-i-i rr\ narHoc TfiO \ / • ' — 1 " J. -"• " ' — • (e) Proprietary estoppel: (i) The development of proprietary estoppel and application 185 (ii) Can a licence be irrevocable both in the law of contract and by reason of proprietary estoppel? 205 (iii) Proprietary estoppel and third parties 214 (f) Settled Land Act 1925 240 Conclusion 25 2 Bibliography 256 The copyright of this thesis rests with the author. No quotation from it should be published without his prior written consent and information derived from it should be acknowledged. U '.'i'7 ;oqj.j J=i£lQ£ei_t9_S£cuB.v_land Section • 1 of the thesis.discusses whether the concept of a licensee in n;;cUt';i v'c po=spccion o:; 1 T,1 cd prior to the decision in';:ERRIWGTON V ERRINBTON and then prpceeeds to cnnsi dcr the tests which w;-re '.-.ubsequenrly developed to distinguish between \a licensee,in exclusive possession and a tenant. The aim.of the exercise is to show how the possessory licence, was in -fact developed to. deal with certain perceived need'.: i;;,af,unbrl in the r^mrining three sections. Section 11 sets out to show how the judiciary: became increasingly willing to use the concept of a possessory licence to avoid the full rigours of the Rent-'.- Acts as statutory controls-were increased and how in recent years' with a move towards deregulation, they have been less prepared to sp>e the licence fulfdll thi s' rol e"» \ Section 111 examines the use which has been! made of licence concepts to avoid the Li mi tation . Acts- and thereby, prevent a finding of "adverse possession. '• Given .. the amendments contained in the Limitation. Act ,: 1980 the section also considers the present scope as well as the! justification for use of the licence- in thi s •-way „ , ; . Finally Section IV shows how, in. contrast to the use of the licence, to detract .from occupational . security examined in . ''.Sectins 11 and H i ,-,:: licence concepts : have been used and developed . to. protect ,r,esidential security where informal fami 1y and :quasi—fami 1y arrangements - f or the occupation of property have^been made...' The Section considers the various approaches which have been taken by the courts in order to decide whether the developments were necessary and desirable, and in particular considers whether the. protection-of vulnerable .groups in society nccccsi t*tes rec""".! +• i nn. nf --the licence as an interest in • J. and .• INTRODUCTION The concept of a licence and aims of the thesis. In the legal context, a licence is simply a permission, dispensation or authorisation to do something which would not otherwise be lawful. As such, licences may arise in very diverse circumstances and either give rights to the licensee or merely a liberty or privilege to do a particular act. For instance, a licence may arise out of central or local government regulations which in some way restrict the activities of citizens, e.g. the need for a licence to drive a car on the public highway, to sell alcoholic liquor, to use a television set etc. Licences may also be granted to interfere with the body of another in some way (e.g. to cut a person's hair, remove his teeth , have sexual intercourse), thereby negating the tort of trespass to the person and, in some cases, a crime. Finally, a licence may be given by an owner of any type of property to permit interferahce with such property in some prescribed way, e.g. destroy a pet, to use a telephone, to enter land (preventing the tort of trespass to property), to reproduce certain material (preventing a breach of copyright). The concern of this thesis, however, is with only one type of situation in which licences occur, namely, licences to occupy the land of another, whether exclusive or non-exclusive. Of this particular area of law, a New Jersey judge once commented: "The adjudications upon this subject are numerous and discordant. Taken in their aggregate, they cannot be reconciled and if an attempt should be made to arrange them into harmonious groups, I eccentric in their application of legal principles, as well as in their logical deductions, as to be impossible of classification."(1) Arguably, the same comment is appropriate to judicial treatment of the licence in the English courts since the beginning of the present century. Hanbury and Maudsley express the view: "The history of licences is a remarkable story of false trails and confused thoughts."(2) The aim of this thesis then is to study the development of occupational licences in an attempt to dispel some of the confusion and to suggest the way forward. The study is divided into four main sections. The first Section, 1 Section I traces the development of the possessory- licence, that is to say the notion that a licensee may be in exclusive possession of land. Sections II and III look at the use the judiciary have made of the concept of the possessory licence in avoiding the statutes collectively known as the Rent Acts (Section II) and the Limitation Acts (Section III). The final section, Section IV considers the role occupational licences have been made to play in family or quasi-family arrangements concerning real property. In each section, in addition to tracing and explaining why judges have made use of licence concepts in the particular sphere in issue, an attempt has been made to evaluate the necessity and desirability of such developments from the practical as well as the theoretical point of view, and to look at present as well as future trends. In the context of real property, the term 'licence' was originally used in contrast to the situation where a person was on the land of another by virtue of some 'interest in land'. A finding of a licence in relation to land was therefore essentially a negative thing; it was a judgement on what the interest is not, compared with what it might be. Hence, in THOMAS v SORRELL, Vaughan C.J. explained: "A dispensation or licence properly passeth no interest, nor alters or transfers property in anything, but only makes an action lawful, which without it had been unlawful."(3) It is arguable, that since Vaughan C.J. made his statement, the law has developed in such a way that a licensee may in some circumstances have an interest in land. This issue will be discussed fully in Section IV. w . w.1. , — >- ^.^^^^.^ — — • . ~ the House of Lords in STREET v MOUNTFORD, Lord Templeman reiterated the traditional understanding of licences emphasising their negative nature. He said: "The licence does not create an interest in land to which it relates but only makes an act lawful which would otherwise be unlawful."(4) From the outset, it is important to note that care is required in defining licences, especially where a comparison is expressly or implicitly being drawn with an interest in land. In this respect, some of the principal textbook writers are not very helpful, as they define licences relating to land in terms which are positive. For example, Cheshire and Burn say: ". .. a licence is essentially a permission to 2 enter upon the land of another for an agreed purpose. The permission justifies what would otherwise have been a trespass."(5) Similarly, in the opening to the chapter on licences, Megarry and Wade say: "Fundamentally a licence is a mere permission which makes it lawful for the licensee to do what would otherwise be a trespass."(6) Such definitions obscure the essentially negative nature of a licence, and are the starting point for the confusion which has arisen in relation to occupational licences. In MARCROFT WAGONS LTD v SMITH, where the court was called upon to decide-^hether the occupier was a tenant or a licensee, Roxb/orough L.J. was hesitant in his use of the term 'licence'. After refusing to find the occupation was as tenant, he commented: "How the interest of the occupant ought, in those circumstances to be described, I do not know.