Contractual Licences
Contractual licences are permissions supported by a contract, either explicitly granted or
implied from the circumstances. For example, in Tanner v Tanner, the court inferred a
contract granting a mother and her children a licence to reside in a house until the children
finished school, based on their circumstances.
Revocation of Contractual Licences
Initially, common law treated contractual licences as revocable at will, as they created no
interest in land. However, equity intervened to prevent revocation in breach of contract terms.
Licences must now be revoked in accordance with contractual terms or (Whipp v Mackey),
where silent, on "reasonable" notice as determined by the courts (Winter Garden Theatre v
Millennium Productions).
A contractual licence grants a personal right to enter and remain on another's land but does
not create a proprietary interest, meaning it can generally be revoked at any time, even in
breach of contract, leaving the licensee with only a remedy in damages and no right to remain
on the property (Wood v Leadbitter). However, once a person enters premises under a valid
licence, such as a ticket, the licensor cannot arbitrarily revoke the licence without
justification. If they do and forcibly remove the licensee, it may lead to a clam in trespass
(Hurst v Picture Theatres Ltd). The revocability of a licence also depends on the contract’s
terms; if the licence is intended to endure for a specific period or purpose, it may not be
revocable, and a licensee may seek equitable remedies to enforce it if the licensor breaches
the agreement (Winter Garden Theatre (London) Ltd v Millennium Productions Ltd).
Furthermore, a licence that is necessary for the licensee to perform contractual obligations,
such as completing construction, cannot be revoked arbitrarily. In such cases, courts may
grant injunctions to prevent interference with the licensee’s rights (London Borough of
Hounslow v Twickenham Garden Developments).
Upon termination, a licensee must be given time to vacate before being treated as a trespasser
(Winter Garden Theatre v Millennium Productions). Remedies for wrongful revocation
include damages for breach (Wood v Leadbitter), injunctive relief (Verrall v Great Yarmouth
Borough Council), or claims for assault if force was used (Hurst v Picture Theatres).