King v David Allen [1916] 2 AC 54

Key point

• Contractual licences are not proprietary in nature i.e. they not binding on successors in title

Facts

• Question arose as to whether a licence to place an advertisement on the walls of a building given by the preceding tenant bound the new tenant

Held (House of Lords)

• The licence was not binding on the new tenant

Earl Loreburn

• The licence does not create any interest in the land except for a promise to allow the other party to the contract to use the wall from advertising purposes and an implied undertaking that not to breach the contract

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