LICENCES AND RESTRICTIVE CONVENANTS

LICENCES

 LICENCES

INTRODUCTION.

A licence is essentially a permission to enter upon the land of another for a specified purpose. It justifies a conduct which would otherwise have been a trespass. A licence is distinct from an easement, profit a prendre or local customary grant in that it is merely a personal liberty granted to a person to do something on the property of another.

OBJECTIVE

The objective of this unit is to examine licences and the implication of its grant to another person.

CLASSIFICATION OF LICENCES

At common law licences are categorized into three main groups

• Bare or gratuitous licence: This is a mere permission to the licensee to enter upon the licensor’s land. Such license may be withdrawn or revoked by the licensor
• Licence coupled with a grant or interest: A licence is said to be coupled with a grant or interest when the licensee is granted definite proprietary interest in the land or in chattels lying on the land and permitted to enter the land to enjoy or exploit the resources on the land

A licence coupled with a grant or interest may be irrevocable. It is distinct from a bare licence. They are two separate matters inter twined - the grant and the licence

As stated by Vaughan. J in Thomas v Sorrel (1673) Vaugh 330 but a licence to hunt in a man’s park and to carry away the deer killed to his own use; to cut down a tree in a man’s ground and to carry it away the next day after to his own use, are licences as to the acts of hunting and cutting down the tree but as to the carrying away of the deer killed and the cut they are grants.

Equity may grant an injunction to the licensee to prevent the licensor from revoking the licence contrary to the terms of the  grant. The licence is ineffective in common law since it is not evidenced by a deed in writing.

• Contractual licence: A contractual licence is a licence for which consideration has been furnished. Such a licence cannot be revoked arbitrarily.

In Hurst v Picture Theatres Ltd (1915) 1KB 1 A Plaintiff who had purchased a ticket for a seat at a cinema show was forcibly turned out of his seat on the instruction of the manager who thought the Plaintiff had not paid for his seat. In an action for assault and false imprisonment, the Plaintiff was held to be entitled to recover substantial damages

 CONTRACTUAL LICENCES AND THIRD PARTIES

A contractual licensee is protected by the court. A bare licence is revocable by the licensor at any time but the licensee cannot be treated as a trespasser until a reasonable time after notice that the license has been or will be withdrawn. Where however the licence is coupled with a grant or interest, it is irrevocable by the licensor. If the interest granted is legal, it binds all successors in title except a bonafide purchaser of the legal estate without notice from the licensor.

In Binions v Evans (1972) CH665 a contractual licence was enforced against a purchaser who took a conveyance of land expressly subject to a licence having in consequence paid a reduced price.

LICENCE BY ESTOPPEL

The general principle is that an estoppel arises where one party makes a representation or promise to another intending that he should act in reliance on it, he is estopped from acting inconsistent with his promise or representation.

In Ramsden v Dyson (1866) LR 1HL 129, it was held that if a man under a verbal agreement with a landlord for certain interest in land or not to do the same thing under an expectation created or encouraged by the landlord that he shall have a certain interest takes possession of such land with the consent of the landlord and upon the faith of such promise or expectation with the knowledge of the landlord and without objection by him, lays out money upon the land, a court of equity will compel the landlord to give effect to such expectation.

See also Willmott v Barber (1880) 15 Ch D 96.

TRANSFER OF BENEFIT OF LICENCE.

Whether a licence is transferable or not depends on the nature and circumstances of the grant.

In Inwards v Baker (1965) 2 QB 19, where the son’s licence was to remain in the bungalow for as long as he desired to use it as a home, it was held that the right was clearly personal and not transferable.

CONCLUSION.

In considering the effect of a licence, at common law, a distinction  is drawn between a mere licence whether gratuitous or contractual and a licence coupled with a grant, while the former was revocable, the latter could be irrevocable. The effect of revocation of a licence is that the licensee becames a trespasser.

SUMMARY

• A licence is permission to enter another person’s land for a specified purpose
• A licence confers a personal benefit on the person to whom it is granted
• Licences are categorized into bare or gratuitous licence, licence coupled with a grant or interest, and contractual licence
• A contractual licence is enforceable against a subsequent purchaser.
• A licensor is estopped from acting in a manner inconsistent with a representation made to a licensee who has altered his position in reliance on the representation
• Whether a licence is transferable or not depends on the nature and circumstance of the grant

• 	TUTOR MARKED ASSIGNMENT
  1.	Analyse the classification of licence.

  Okafor paid N500.00 for a ticket to watch alpha match   but was ordered to leave  the  arena by the  coach of   alpha football  club. Discuss  the nature of the licence granted if  any.

   

   SUGGESTED FURTHER READING /REFERENCES

  Emeka  Chianu  Law   of  Landlord  and  Tenant,  cases  and comments (Benin City: Nigeria Printer Publication, 2006