Land Law

Licences cases

Hurst v Picture Theatres Ltd [1915] 1 KB 1

Key Point

• A contractual licence is irrevocable and remains in effect even when it is breached

Facts

• C bought a ticket to the theatre but was forcefully ejected by the manager who mistakenly believed that C had not paid
• C claimed that the removal amounted to a tort of trespass to the person
• The theatre (D) claimed that although revocation is a breach of contract, once the contract was revoked C became a trespasser and D was permitted to remove him

Held (Court of Appeal)

• C had a contractual licence that could not be revoked
• Damages were awarded to C for breach of contract and tort of trespass

Buckley LJ

• A bare licence, not coupled with an interest or a grant, is revocable but a licence paired with an interest or grant (i.e. a contractual licence) is irrevocable: p. 5 – 6
• Reason being that equity will grant an injunction/specific performance to restraint the revocation of a contractual licence: p. 8 – 9
• In the present case the licence was given to enable D to exercise the right granted to him to view the theatre performance, thus there was a licence coupled with a grant: p. 7
• Another way to put it is that where there is a licence with an agreement for value not to revoke the agreement is enforceable
• In this case, the licence carried an obligation not to revoke the licence until the performance was over: p. 10

Commentary

• Buckley LJ gave the specific enforceability of a contractual licence as the reason why it cannot be revoked in breach of contract
• In Hounslow v Twickenham, the Sir Robert Megarry V-C held that a contractual licence did not have to be specifically enforceable to be irrevocable, as long as the contract carried an implied obligation not to revoke