Chapter 9 Scenario questions

. Anna entered into an 'occupation agreement' with Ben under which Anna was entitled to occupy two rooms in a large house owned by Ben in return for which she paid £250 per month. The agreement contained clauses that (1) the agreement did not amount to a lease; (2) Anna could be asked to leave the flat and move to another premises at the request of Ben as the landlord; (3) the landlord can enter the property at any time for inspection without notice. In the event, Ben never asked Anna to leave the flat, nor inspected the property without first giving seven days' notice. Anna seeks your advice as to her status under the agreement? Select one of the following.

The agreement under which Anna occupies the property is expressly stated to be an 'occupation agreement' and therefore she cannot be a tenant. Anna is a licensee.

The agreement under which Anna occupies the property is expressly stated to be an 'occupation agreement' but the court is prepared to look beyond labels. The clauses of the agreement that clearly intended to avoid the consequences of a lease have not been complied with by Ben. The court may, despite these clauses, find that Anna is a tenant.

The agreement under which Anna occupies the property is expressly stated to be an 'occupation agreement' and the court must attach due weight to the nature and terms of agreements freely entered into by the parties.

The agreement under which Anna occupies the property is expressly stated to be an 'occupation agreement' but this does not prevent the finding of a lease. However, on our facts, the terms of the agreement clearly prevent a lease as they destroy any prospect of exclusive possession.

. Chad entered into a 'licence agreement' to occupy a flat owned by Doris. Under the agreement, Doris agreed to provide a series of 'attendances' to Chad including laundry and cleaning of the flat. Doris has also retained a key so that she can enter to offer these services which she does weekly. Chad is unhappy at the poor state of repair of the flat but Doris has refused to carry out the repairs. A key consideration will be whether Chad is a licensee or a tenant; tenants are owed implied rights of repair. Chad seeks your advice as to his status under the agreement. Select one of the following.

Chad will be a licensee and not a tenant here as he does not enjoy exclusive possession of the flat. Doris is able to enter at any time to provide services; thus, Chad does not enjoy 'territorial control' of the flat.

Chad will be a tenant and not a licensee despite the label given to the agreement. Clearly, the agreement is a 'sham' to avoid Chad having exclusive possession, being a tenant and enjoying the benefits of that status, e.g. repair of the property.

Chad will be a licensee and not a tenant here. Chad clearly intended to enter a licence agreement and, as an individual of age and mental capacity, will be held to the bargain he has agreed even if it is 'unreasonable'.

Chad will be a tenant and not a licensee as the court will have sympathy for his plight in view of the decision in Bruton v London & Quadrant Housing Trust (2000) where similarly an occupier wished to have his accommodation repaired.

. Eileen is a freehold owner of two large houses: No. 1 and No. 2 Main Street. She wants to grant Felicity a legal lease of four years over the first property so that Felicity can live in the house until the end of her four-year degree and, additionally, a shorter legal lease of three years to Graham over the other property for the length of his degree which is of shorter duration. Eileen seeks your advice as to the formalities requirements she must satisfy to ensure that effective and enforceable legal leases are created. Select one of the following.

To create an effective legal lease over both No. 1 and No. 2 Main Street, the leases must be created by deed. If no deeds are used, the leases cannot operate and law and will, at best, be equitable.

To create an effect legal lease over both No. 1 and No. 2 Main Street, given the leases are for a duration of less than seven years, there is no need for a deed provided the leases are created using some form of writing.

To create an effective legal lease over both No. 1 and No. 2 Main Street, given the leases are for a duration of less than seven years, there is no need for a deed and the leases can be created orally provided there is an immediate right to possession, no premium and offered at a market rent.

To create an effective legal lease of No. 1 Main Street, as the lease is for a term exceeding three years, a deed must be used; for No. 2 Main Street, as the duration does not exceed three years, the lease can be created orally provided there is an immediate right to possession, no premium and offered at a market rent.

. Harvinder wanted to grant a ten-year legal lease to his friend, Isla, over a house he owned in London. He knew that this was a significant legal undertaking and so sat down with Isla, wrote out all the terms of the lease on a piece of paper including payment of rent, and they both signed the document. Harvinder's brother, Janandeep, who is a lawyer has just informed Harvinder that this form of writing will not be enough to validly grant the ten-year legal lease that the parties purported to agree. Is Janandeep correct? Select one of the following.

A failure of necessary formality requirements to create a legal lease will not prevent the granting of an effective ten-year legal lease in this case as, despite the absence of a deed, there is an enforceable contract for a lease.

A failure of necessary formality requirements to create a legal lease will not prevent the granting of an effective legal ten-year lease in this case as, despite the absence of a deed, the legal lease will arise by estoppel.

A failure of necessary formality requirements to create a legal lease will not prevent the granting of an equitable lease on the same terms as the failed, legal lease as there is an enforceable contract for a lease.

A failure of necessary formality requirements to create a legal lease will not prevent the granting of an equitable lease on the same terms as the failed, legal lease as there is an enforceable contract for a lease. This equitable lease will, however, only be of a limited one-year duration.

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