Lease Licence Distinction essay Flashcards
(15 cards)
What are the three core hallmarks of a lease as outlined in Street v Mountford?
Exclusive possession, for a term, at a rent.
Does labelling an agreement a ‘licence’ make it one?
No – courts look at the substance of the arrangement, not the label.
What is the practical significance of being classified as a tenant rather than a licensee?
Tenants gain statutory rights under the Residential Tenancies Act 2004, including security of tenure, rent protections, and RTB dispute resolution.
What is the ‘contractual approach’ to lease/licence classification in Irish law?
Where an agreement is clear and parties are legally advised, courts will usually honour the expressed intention.
What is a ‘mobility clause’ and why is it relevant?
A clause allowing the occupier to be moved to another premises – suggests a licence, not a lease.
What was held in Kenny Homes & Co v Leonard?
A clearly drafted agreement was upheld as a licence, with the Supreme Court affirming that the terms were ‘crystal clear’.
What approach did the court take in Irish Shell & BP v Costello Ltd?
Adopted a substantive approach — found a tenancy despite the agreement saying otherwise, due to exclusive possession and ambiguity in terms.
What is the key criticism of Smith v CIE?
It undermined the contractual clarity, as the court found a lease despite the party’s legal advice and signed licence.
What reforms did the Law Reform Commission propose after Smith v CIE?
That courts should honour the express licence agreement if parties received independent legal advice.
How does exclusive possession help distinguish a lease from a licence?
It is a strong indicator of a lease, especially where the occupier has control over the premises and the landlord cannot freely enter.
Can a tenant under a ‘licence’ still be protected under the Residential Tenancies Act?
Yes, if the agreement meets the criteria of a tenancy, the RTB and courts may reclassify it as a lease.
Why is the lease/licence distinction increasingly important in residential contexts?
Due to stronger tenant rights under the RTA and housing scarcity, landlords may label agreements as licences to avoid obligations.
What impact does legal advice have on the classification of an agreement?
If both parties had independent legal advice, courts are more likely to uphold the licence as intended.
What is the RTB’s role in lease/licence disputes?
The Residential Tenancies Board resolves such disputes, often applying substantive tests rather than just contract labels.
What case involved a mistaken classification due to ambiguous agreement terms?
Irish Shell & BP v Costello Ltd — the agreement failed to negate exclusive possession and omitted part of the occupied premises.
