Monday 4 April 2011

6 - Licenses

Source: Unlocking Land Law

I think this is relatively easy to understand. Following is the summary:

1) There are 4 different types of license viz a) bare license b) license coupled with interest c) contractual license d0 estoppel license. One should be clear on i) how they are created ii) terminated iii) their effect on 3rd parties

2) Bare license can created informally or may be implied, it can be terminated at will, and it cannot bind a 3rd party

3) License coupled with interest comes into existence by its nature (eg profit a prendre requires a deed), cannot be revoked until interest is revoked, and binds a 3rd party. Hint: right attaches to the land instead of person

4) Contractual license is created formally (where formalities required) or informally, can be terminated as per the contract, and cannot bind 3rd party unless there is a constructive trust

5) Estoppel license can be informal also (but need 3 elements viz promise, reliance and detriment), can be terminated as per the terms of license, can be binding on 3rd party depending on i) EL is capable of registration in case registered land ii) subject to doctrine of notice in case of unregistered land

There is a tutorial activity in the end which is useful to have further clarity.

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