Licenses and Profits

Question 1

The License

Answer 1

The license is a mere privilege to enter another’s land for some delineated purpose.

It’s merely a privilege, revocable at the will of the licensor.

A license is personal to the licensee and, thus, inalienable. Any attempt to transfer a license results in revocation by operation of law.

Question 2

Creation of License

Answer 2

A writing is not needed.

Question 3

Revocation of License

Answer 3

Licenses are freely revocable, at the will of the licensor, unless estoppel applies to bar revocation.

Classic License Cases:
1. ticket cases
2. Neighbors talking by the fence - beware of seemingly oral easements

Question 4

When will estoppel apply to revocation?

Answer 4

Only when the licensee has invested substantial money or labor or both in reasonable reliance on the license’s continuation. The license becomes an easement by estoppel, which lasts until the holder receives sufficient benefit to reimburse him for his expenditures.

Question 5

License Coupled with an Interest

Answer 5

A license coupled with an interest is irrevocable as long as the interest lasts.

For example, the buyer of a chattel may enter the seller’s land to remove the chattel, or a future interest holder may enter and inspect the land for waste.

Question 6

The Profit

Answer 6

the profit entitles its holder to enter the servient land and take from it some resources, for example, soil, some substance of the soil (minerals, timber, oil), or some product of the property (fish, game).

Question 7

Rules for creating and terminating the profit

Answer 7

All of the rules governing creation, alienation, and termination of easements are applicable to profits. In addition, a profit may be extinguished through surcharge (misuse that overly burdens the servient estate).