Challenged orthodox view that contractual licenses not
binding on third parties.
binding on third parties.
Father brought house, partly funded by his own money
and partly by building society loan.
and partly by building society loan.
Allowed son and daughter-in-law to go into possession
and said that if they paid all instalments on loan he would convey legal estate
to them.
and said that if they paid all instalments on loan he would convey legal estate
to them.
Father died 9 years later leaving house to widow.
Son left wife, but wife remained in occupation and
continued to make payments.
continued to make payments.
Widow brought action for possession.
Court of Appeal dismissed.
Son and daughter-in-law were licensees entitled to
occupy house as long as they paid instalments.
occupy house as long as they paid instalments.
License was binding upon licensor’s devisee (the
widow).
widow).
Broad principle – neither licensor nor anyone who
claims through him can disregard contract except purchaser for value without
notice.
claims through him can disregard contract except purchaser for value without
notice.
This due to infusion of equity into the law.
