Chapter 11 Outline answers to essay questions

Chapter 11 Outline answers to essay questions

Licences and proprietary estoppel

Whilst licences are rights connected to the use of land they are unusual since, in theory at least, they do not confer any proprietary right upon the licensee and thus the protection they afford a licensee is limited.

Discuss.

It is suggested that you first consider the traditional view of a licence, notably that it creates a personal and not a proprietary right. Analysis of the difference between personal and proprietary rights may be appropriate, with specific focus on the ability of a holder of a proprietary interest to enforce that right against third parties in certain circumstances. Consider how, traditionally, such an ability has not been afforded upon licensees by looking at each type of licence. A bare licence, for example, can be revoked at any time; a contractual licence may be enforceable between the original parties by the intervention of equity (Winter Garden Theatre (London) Ltd v Millennium Productions Ltd (1948)) but not beyond those parties (King v David Allen & Sons (1916)).Why has the law traditionally limited licences to having a mere personal status?

Focus could then turn to challenging the statement that licences do not confer a proprietary right upon licensees and the protection that goes with it.

Again you could focus on specific types of licences:

  • Analyse the basis upon which a licence coupled with an interest may be enforceable against a third party. Is there any argument to suggest that this makes this licence proprietary in status?
  • Analyse the arguments put forward by Lord Justice Denning in Errington v Errington & Woods (1952) in respect of contractual licences having proprietary status when protected by a constructive trust or an estoppel. Support with other case law, for example Binions v Evans (1972). Look at the response in National Provincial Bank Ltd v Ainsworth (1965) and Ashburn Anstalt v Arnold (1989).

Draw appropriate conclusions. (Remember that an answer to this type of question will benefit from a detailed knowledge of the arguments put forward in the various cases together with current academic debate.)

Back to top