Licenses and Proprietary Estoppel
1)Licenses
-License: This is permission from an owner of land (Licensor) to the Licensee to use the land
for an agreed purpose.
*-A license does not equate to an estate in land, it is simply a personal permission to do
something and nothing more. Therefore, it cannot:
a) Bind third parties
b) Be transferred.
-A license by estoppel (proprietary estoppel) can bind third parties.
-Four types of licenses:
1) Bare Licenses
2) Licenses coupled with an interest
3) Contractual Licenses
4) Estoppel Licenses.
1)Bare Licenses
*-Bare licenses (Gratuitous License): Licenses given without any consideration from the
licensee (i.e. when you are invited to someone’s house for a party). They can be withdrawn
by the licensor at anytime.
--No formalities to creating a license and can be created expressly (i.e. being invited to a
party or a milkman having an implied license to deliver milk to your doorway).
*-The scope of this license I limited to what it has been granted for.
--The bare license can be revoked on giving reasonable notice at any time and at the will of
the licensor. The licensee must be given reasonable time to leave the property.
-What amounts to reasonable notice and reasonable time depends on the circumstances of
the case, that is, the nature and purpose of the license.
2)Licenses Coupled with an Interest
*-Where the license is coupled with an interest in the land (i.e. a license to go on the land to
collect wood). The right to collect wood is a profit.
--A profit without a license is of no use because require the license to go on the land to
exploit the profit (i.e. to collect wood).
--Therefore, in this situation the license and the proprietary interest are inseparable.
*-The formalities for creating a proprietary interest (i.e. a profit) must be complied with. That
is, created by deed, and the license is in addition to this grant.
--Therefore, the interdependency between the proprietary interest and the license results in
the license becoming irrevocable and assignable to a third party and is capable of binding
them.
1)Licenses
-License: This is permission from an owner of land (Licensor) to the Licensee to use the land
for an agreed purpose.
*-A license does not equate to an estate in land, it is simply a personal permission to do
something and nothing more. Therefore, it cannot:
a) Bind third parties
b) Be transferred.
-A license by estoppel (proprietary estoppel) can bind third parties.
-Four types of licenses:
1) Bare Licenses
2) Licenses coupled with an interest
3) Contractual Licenses
4) Estoppel Licenses.
1)Bare Licenses
*-Bare licenses (Gratuitous License): Licenses given without any consideration from the
licensee (i.e. when you are invited to someone’s house for a party). They can be withdrawn
by the licensor at anytime.
--No formalities to creating a license and can be created expressly (i.e. being invited to a
party or a milkman having an implied license to deliver milk to your doorway).
*-The scope of this license I limited to what it has been granted for.
--The bare license can be revoked on giving reasonable notice at any time and at the will of
the licensor. The licensee must be given reasonable time to leave the property.
-What amounts to reasonable notice and reasonable time depends on the circumstances of
the case, that is, the nature and purpose of the license.
2)Licenses Coupled with an Interest
*-Where the license is coupled with an interest in the land (i.e. a license to go on the land to
collect wood). The right to collect wood is a profit.
--A profit without a license is of no use because require the license to go on the land to
exploit the profit (i.e. to collect wood).
--Therefore, in this situation the license and the proprietary interest are inseparable.
*-The formalities for creating a proprietary interest (i.e. a profit) must be complied with. That
is, created by deed, and the license is in addition to this grant.
--Therefore, the interdependency between the proprietary interest and the license results in
the license becoming irrevocable and assignable to a third party and is capable of binding
them.
