Contractual Licence CASES

In English land law, a contractual licence is permission granted by contract for a person to enter or use land for a specific purpose. Unlike a lease or easement, it creates only a personal right between the parties and does not confer a proprietary interest in the land.

Definition and Principles

A contractual licence arises from agreement between a landowner and licensee, often supported by consideration. It is enforceable in contract but, traditionally, not binding on third parties. Equity, however, may intervene to restrain revocation in certain circumstances.

Requirements for Establishing

• Agreement: There must be a contractual promise to allow entry or use of land.
• Consideration: Typically required, though not in all cases where equity recognises reliance.
• Scope: Limited to the permissions expressly or impliedly agreed.
• Revocation: Licences may be revocable, though equitable principles can restrict unfair termination.

Practical Applications

Contractual licences often arise in commercial and residential contexts, such as agreements to occupy premises short-term. In Errington v Errington (1952), the Court of Appeal recognised that equity could prevent revocation of a contractual licence where the licensee had relied on it.

Importance

Contractual licences highlight the distinction between personal and proprietary rights in land law. They provide flexible arrangements for land use while demonstrating the limits of contractual rights against third parties.