Leases: Factors that defeat a lease

Question 1

What are the main situations that can indicate a lease is a license?

Answer 1

Where there is no intention to create legal relations

Where there is a service occupancy

Question 2

What case set out circumstances where there is a lack of intention to create legal relations? And this makes an agreement a license

Answer 2

Facchini v Bryson

Question 3

What is the test in Facchini v Bryson?

Answer 3

Where there is a family arrangement, an act of friendship or generosity, it can be presumed that there is a lack of such intention

BUT

if there is a degree of formality to the agreement and or market rent is paid then this would evidence an intention to create legal relations

Question 4

What does it mean where there is a service occupancy?

Answer 4

This type of occupancy only arises where there is employer/ employee relationship between the landowner and occupier.

Where the occupier is required to live in the premises for the better performance of his duties as an employee there is no tenancy even though rent may be paid.

eg caretaker flat

KEY QUESTION TO ASK:

WHETHER THE EMPLOYEE IS IN OCCUPATION FOR THE BETTER PERFORMANCE OF THEIR JOB ROLE