A. Find out how you can intelligently organize your Flashcards. This is because the agreement stipulated that Martin had the right to introduce an additional occupant into the apartment at any time. Please sign in to share these flashcards. Advise Laura and Trevor on their respective positions. Peter owns a two-bedroom basement flat from which he wants to earn some money. It was further held by the Supreme Court in Khalil Ahmed basher Ahmed v Tufelhussein Samasbhai Sarangpurwala, that if an interest is created in an immovable property which entitles a transferee to enjoy it without any interference, the document should be construed as that of a lease agreement. In 2010 Cleaneze plc had entered into a forty year licence of the flat with Dot, Bees mother who was the manager of the launderette. This point has been discussed earlier in this article that a lessee or the person who gets the possession of the leased property enjoys in exclusively unlike in case of a licence agreement. By using our site, you agree to our collection of information through the use of cookies. But before you move forward, compare the residual value to the cars retail value to determine if youre getting a good deal. We'll bring you back here when you are done. In order to determine whether there would be a breach of Ms licence, Gs rights must be considered. editorial policy, so you can trust that our content is honest and accurate. In doing so, it will be ascertained whether Amanda could acquire vacant possession of the ground floor apartment and the shed. Usually leases are entered into for longer periods than licenses, and are not terminable at the owners will. For Further Details Contact: Tenants under leases can rely on hundreds of years of common law, as well as New York State statutes to protect their investment in the premises. This was held by the Supreme Court in C.M. The tenant has a certain amount of time to correct the problem or leave. The attorney listings on the site are paid attorney advertisements. with a licence agreement, telling Martin that he is prepared to let the flat only on the stated terms. A lease by any other name is still a lease, unless it is a license. possession was not a sham. Sometimes, there arise some situations, which abridge difference between them. Therefore, it seems that the criteria for a promissory estoppel claim are present in this case. {United holdings v Burnley} any payment described as rent in the lease. There must be a consideration fixed for lease for lease that may be in the form of: a) money; b) moneys worth such as a share in crops; c) service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee. There are five determinants to our analysis: tenure/time; control; cost; condition (habitability);s and immigration status. The difficulties occupiers and landlords face in untangling the patchwork of protections unites these different determinants. Nevertheless, courts are willing to strike such clauses out by assessing the wider circumstances of the case as shown in Antoniades v Villers [1990] where it was held that the power reserved to the landowner. M would have a Leases Lecture - Example Problem Questions - LawTeacher.net Whereas, a licencee cannot defend his possession in his own name as he does not have any proprietary right in the property. interest in the land would bind G if it was found to be an overriding interest. Tenants under leases can rely on hundreds of years of common law, as well as New York State statutes to protect their investment in the premises. The case of Cameron Ltd v Rolls-Royce plc is similar to the case at present. should make a claim to remain in the flat under a licence. Typically, a default occurs if you fail to make three or more payments in a row. This situation could be possible as unlike Ms agreement, Gs agreement may satisfy all the requirements he may be able to claim an overriding interest under actual occupation (Land Registration Act 1925 s (1) g) or at David Smith. Duration of Lease The lease need not be for fixed period but its duration should be definite. Key takeaway. . A lease usually requires an oral or written agreement between the two parties involved. Also, it should be noted that a lease cannot be revoked by the owner before the term is up, so long as no other terms of the contract have been violated. It is important to note that there is no acid-test for diffentiate lease from licence. Leasing a car lets you rent a vehicle for a few years without the obligation to purchase it. How and when payment should be made. A licensee without the grant creates a right in the licensor to enter into a land and enjoy it. Cure or Quit Notice: Use when a tenant violates a term or condition of the lease. Irrespective of whether the parties call an agreement a "license" or a "lease," dispositive indicia include the extent to which each party provides essential services (maintenance, repairs, utilities, cleaning, security, etc. I will now take each of these elements in turn. A final consideration to make is that a party cannot turn a lease into a license by merely calling it that; the terms of the agreement and the nature of control are the main determining factors. This is a problem question for the subject of Land/ Property Law. Weve maintained this reputation for over four decades by demystifying the financial decision-making Martin proceeded to convert the house into two self-contained apartments, one on the ground floor and one on the first floor of the property, with separate access points to each. subject matter experts, Consequently, it may be decided that the remedy most Accordingly, it is highly likely that Trevor would be able to successfully claim an equitable interest through proprietary estoppel which will bind Amanda so that she will be estopped from denying Trevor a right to the shed. Amanda has told Laura and Trevor that they must vacate the ground floor apartment and the shed. In December 2018, Trevor (a friend of Martins who had been living in Canada) decided to return to Northern Ireland. Such an agreement should include the following information to be complete: Licenses, on the other hand, do not always need a written agreement to be binding. [Show More] Preview 2 out of 17 pages Generating Your Document Report Copyright Violation Exam Details $14.45 Add To Cart If there is no lease but permission to occupy then Fifoot will more likely have a licence. (the 200 rent), this would create a contractual licence. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb. Peter further states that he plans to use the second In Union Square Park Community Coalition, Inc. v. New York City Department of Parks and Recreation, the Court of Appeals of New York recently held that an agreement between the City and a seasonal restaurant located in Union Square Park, which retained many characteristics of a lease, was in fact, a license. The difference between lease and license is the difference between two distinct legal concepts pertaining to an individuals duties and rights in a contract. Generally, a lease contemplates the following: a) a demise or a transfer of a right to enjoy property; b) for a term or in perpetuity; c) in consideration of a price paid or promised, or of money, a share of crop or services or other things of value to be rendered periodically or on specified occasions to the transferor. Ltd. v. UOI, AIR19060SC1373 # Jaswantsingh Mathurasingh v. Ahmedabad Municipal Corporation, (1992)SuppI SCC5, 12 # Jacob v. Subromonia, AIR1960Ker212 # Rikhy v. New Delhi Municipality, AIR1962SC554 # Anwarali v. Jamini Lal, AIR1940Cal89 # Tola Ram v. Bombay, AIR1954SC158 # R Kemparaj v. Burton Son, AIR1970SC1872 # Narayan Gosain v. The Collector Cuttack, AIR1986Ori46, 51 # Life Insurance Corporation of India v. India Automobiles & Co., (1990)4SCC286 # Manimohan Pat v. Gour Chandra Das, AIR1934Cal71 # Minerals Development Ltd. v. UOI, AIR1960SC1373 # Govinda Kurup v. Chowakkaram, AIR1931Mad147 # Kunj Behari Lal v. Shivji Maharaj, AIR1973All217 # Govinda Kurup v. Chowakkaram, AIR1931Mad147 # T Lakshmipathi v. P Nithyananda Reddy, 2003(3)RCR(Civil)306(SC) # Vakalpakam Amma v. Muthurama Iyer Muthukrishna Iyer, AIR1995Ker99 # Peter George v. Janak Gandhi, (1996)36DRJ248 # Ramchand v. Lal, AIR1936Lah890 # Municipal Corpn Bombay v. Secretary of State, (1905)ILR29Bom580 # P S Bedi v. Project and Equipment Corp of India, (1994)28DRJ680 # Section 52, Indian Easement Act, 1882 Blacks Law dictionary # Lall v. Dunlop Rubber Co., AIR1968SC175 # Megh Raj v. DCM Ltd., AIR2000Del332 # Associated Hotels of India v. R N Kapoor, AIR1959SC1269 # Ajab Singh v. Shital Puri, AIR1993All138 # Lall v. Dunlop Rubber Co., AIR1968SC175 # Associated Hotels of India v. R N Kapoor, AIR1959SC1269 # Puran Singh Sahni v. Sundari Bhagwandas Kripalani, (1991) 2 SCC 180 # A.G. Securities v. Vaughan, [1988] 3 AllER 1058 # H.S. The law also says that wear-and-tear standards must be reasonable. Martin moves in and, as arranged, he shares the flat with Peter for the first two weeks. ), and the right of the owner to alter the premises. Bankrate follows a strict editorial policy, so you can trust that were putting your interests first. Finance Lease Questions and Answers | Homework.Study.com You can download the paper by clicking the button above. No need to spend hours finding a lawyer, post a job and get custom quotes from experienced lawyers instantly. Were transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Parties in Lease The parties to the lease are the transferor, who is called the lessor or landloard, and the transferee, who is called the lessee or tenant. Fee simple absolute in possession (freehold) 2. Introducing Cram Folders! You have money questions. A lease can either be a fixed term lease (Lace v Chandler- until the end of war converted into a fixed term) or a periodical lease (Prudential- implied periodic tenancy based on regular payment), which, certainty of term is fundamental for both. Although few plan to fall behind on lease payments, it is important to understand what could happen if you miss a payment. Nonetheless, even though an express fixed term or periodic tenancy is not granted, there may be Click here Clubwala v. Fida Hussain Saheb, the Supreme Court dealt with the question that whether an agreement creates between the parties the relationship of landlord and tenant or merely that of licensor and licensee and held that the decisive consideration is the intention of the parties. Since a lessee has an estate in land, it would entitle M to claim in trespass or Was this document helpful? The decisive consideration is the intention of the parties, but the intention must be gathered on a true construction of the agreement and not merely from the description given by the parties. Preparation is key. Please upgrade to Cram Premium to create hundreds of folders! Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. Ltd. v. State of Maharashtra, AIR1965SC590 # Minerals Dev Pvt. The House of Lords held that where the arrangement in question was intended to create legal relations, and the occupier was granted a right to exclusive possession of the premises for a fixed or periodic term at a rent, then a lease or tenancy arises. Find out how you can intelligently organize your Flashcards. In an open-end or finance lease, you will have to pay the difference between the cars residual value and its actual value at the end of the lease. In Street v Mountford [1985], the House of Lords held an occupation agreement amounts to a lease if and only if:. If the term is a sham then the agreement will be looked at again without that term. 7. Nonetheless, the main question that will determine whether the agreement between M and P is a lease is whether Leases usually allow 12,000 or 15,000 miles before fees kick in. Conversely, licensing agreements are akin to a "personal privilege," and generally just give the licensee permission to use the premises, or a portion thereof, sometimes on a non-exclusive basis. Consideration may be termed as rent plus premium as well as rent alone or premium alone. The case of Walsh v Lonsdale involved a periodic yearly tenancy. In a closed-end lease, the leasing company sets a total price based on their estimate of the vehicles depreciated value. Proudly created with Wix.com, First Class Land Law 2045 2020 Take Home Exam (Awarded an 80) Problem Question Answer, 2022 QUB The Verdict. You even benefit from summaries made a couple of years ago. The issue here is a clash of interest between the Newport Arms (Newport), a condominium association, and Samuel Mercal, a resident of the condominium. Along with possible lease extensions, ask about termination fees. Usually leases are entered into for longer periods than licenses, and are not terminable at the owners will. Both the provisions look similar, then what make them different is a very important question, which has to be resolved, and it is abstruse to do so. But this compensation does not influence the information we publish, or the reviews that you see on this site. This is where the party has the legal right to keep the world, including the landlord, out of the property and therefore creates a lease, By multi-occupancy agreements the parties merely have EO and therefore no lease, A -B = lease agreement despite it being labelled as a licence, 5th requirement a problem: doesn't give a start/end date just told live there for life, 6th requirement needs more info to determine if they have EP as it says nothing about how much control she has, Not in writing form so no periodic tenancy, and M remains as a mere licence with no control over land so A can control her rights and enforce M's notice to quit, Don't need to go through if there's a lease for flat 3 as V wants property repaired - needs to use S. 11 LL and T act 1985, NO CAPABLE GRANTOR of lease to V as KW are merely a licensee as they took a licence agreement from A, V wouldn't be successful if they tried to invoke S 11 with A, V HAS A NON-PROPRIETARY LEASE IS ENFORCEABLE ONLY AGAINST KW AND NOT OUTSIDE WORLD. The main difference then is that leases give an individual the right to control property, while licenses only give an individual the right to act on it. One of the most famous case in this regard is Associated Hotels of India v RN Kapoor, which provided a clear cut idea between the difference between these two concepts. At Bankrate we strive to help you make smarter financial decisions. It continues and the purchaser has to wait till the time period for which the tenancy was created is over before he can get the possession, whereas, in case of a licence, if the property is sold to a third party, it comes to n end immediately. Home equity is the portion of your home youve paid off. What is the difference between a lease and a licence? Knowing a vehicles residual value helps you determine which type of car and which type of financing is best for you. Many companies have grace periods, which you should ask about before signing the lease. Distinguish between lease and licence - The Student Room The registered freehold of the property was owned by Cleaneze plc, a cleaning company that used the shop as a launderette. A license, inter alia, (a) is not assignable; (b) does not entitle the licensee to sue the stranger in his own name; (c) it is revocable and (d) it is determined when the grantor makes subsequent assignment. Bankrate follows a strict Its usually represented as a small decimal. b. use the second bedroom could be considered to be a sham by the court. Boost your business with rewards, perks and more. process and giving people confidence in which actions to take next. However, it is unclear whether Laura has exclusive possession over the property. The views expressed in this document are solely the views of the author and not Martindale-Hubbell. Where there is no transfer of interest there is no lease.Further, if an option is given to the lessor by the lessee himself to resume the leasehold, it is a personal covenant and does not create an interest in the land. Joint Tency Vs. Consult counsel to understand the difference and to create a document that will best preserve your rights and remedies. UpCounsel accepts only the top 5 percent of lawyers. There are a number of major ways that leases differ from licenses, but the primary one pertains to the matter of control. You will be charged for any excessive damage, though you wont have to pay for the inspection. Owners looking to avoid granting a more substantive "tenancy" interest, should include a revocation at will provision, and consider supplying more of the licensees essential needs in consideration for a license "fee," as opposed to "rent". The issues concern the correctness of the finding of the majority in the Court of Appeal that there had not been a breach of fiduciary duty Use LEFT and RIGHT arrow keys to navigate between flashcards; Use UP and DOWN arrow keys to flip the card; audio not yet available for this language. Anything else is a licence. Leasing a vehicle is a big commitment, but it can pay off if you know what youre getting into. Therefore if the licence agreement between M Though Martin lives alone and so needs only one bedroom, There are no formalities for a lease made for three years or less so long as it takes effect in possession and is at the best rent reasonably obtainable (s.52 (2) (d) and 54 (2) LPA 1925)). Lease is much extensive than that of licence, and it confers a great amount of right to the transferee which cannot be extinguished so easily. That means, if an owner of a land grants permission to use the land without any exclusive, the document should be construed as that of a licence. The offers that appear on this site are from companies that compensate us. Peter tells Martin that he is including this provision only because he wants to avoid recently enacted legislation which If youre thinking of leasing a car, dont jump at the first offer you see. Leasing laws require your lessor to tell you whether and how wear and tear will be assessed when you return the vehicle. actually a lease. Key principles Ind AS 116 applies to leases of Property, Plant and Equipment (PPE) and other assets, with only limited exclusions. Licence. 4 Things Landlords Are Not Allowed to Do - Investopedia All Rights Reserved. Introducing Cram Folders! For instance, you might not be covered if you rent a room to another person without landlord knowledge. If the car depreciates more than expected, you may face a hefty charge at the end of the lease. The purpose of the Residential Tenancies Act is to pr Part I Issues Some licences with reference to use of immovable property may be very wide, virtually bordering upon leases. Although the miles allowance is often a negotiable number, changing it will impact your payment. The court may potentially grant Trevor an estoppel licence over the shed on this basis following Inwards v Baker [1965]. Tenants under leases have holdover rights; licenses may be revoked at will at the expiration of the license term. If you need help understanding the difference between lease and license, you can post your legal need on UpCounsels marketplace. These clauses are commonly inserted in order to disguise the grant of a tenancy (Lord Templeman in Street). lease, then G would be entitled to claim exclusive possession of the property, consequently requiring M to leave the To conclude, even if Fifoot has all the necessary elements present under Street v Mountford, his interest may be a licence following Cameron because it is a commercial case and the wording and intentions of which are essential (National Car Parks). Set yourself up for success by asking these questions first. will then move out and Martin will thenceforth be the sole occupant of the flat. The lessor and the lessee cannot be the same person, they have to be two different persons.A lessor can be an absolute owner of the land or a joint tenant or a lessee himselfbut above all must be competent to contract. A lease can commonly be found where an agreement satisfies the requirements laid out by Lord Templeman within Street v Mountford [1985] which includes exclusive possession; for a term certain; at an agreed rent. Unleash developer productivity with generative AI | McKinsey explained that the substance of the agreement needs to be considered in order to determine whether an agreement While bare licences do not enjoy a degree of permanence and stability due to their personal nature (Lord Wilberforce in National Provincial Bank v Ainsworth (1965)), Trevor could potentially claim an equitable interest over the shed through the doctrine of proprietary estoppel. This essay question is o. Weigh your options before agreeing to a lease term and understand exactly how your term will affect your monthly payment. Lease and license problem question | LAW61504 - Land Law I - Taylors In Union Square Park Community Coalition, Inc. v. New York City Department of Parks and Recreation, the Court of Appeals of New York recently held that an agreement between the City and a seasonal restaurant located in Union Square Park, which retained many characteristics of a lease, was in fact, a license. And it was further held by the court that the conduct of the parties of the parties before and after the creation of relationship is of relevance for finding out their intention.