Street v Mountford

Facts

Mr Roger Street granted a term of occupation to Mrs Mountford for a rent. The written agreement included numerous references to the effect that it was a "licence". Several clauses also purported to retain for Mr Street rights of entry and termination. Mrs Mountford was also restricted in what she could do on the property, including bringing in animals and children. The agreement was so drafted to create a licence that would not come under the Rent Act, rather than a tenancy, which would entitle Mrs Mountford to the protection of the Rent Act. Mrs Mountford subsequently applied for rent protection, and the case progressed to the House of Lords.

Judgment

The Lords (Lord Scarman, Lord Keith of Kinkel, Lord Bridge of Harwich, Lord Brightman and Lord Templeman) unanimously held - with Lord Templeman delivering judgment - that an agreement for exclusive possession for a term at a rent creates a lease or tenancy, regardless of what the parties call it. Lord Templeman memorably stated that "a five pronged implement for manual digging is a fork", whatever the manufacturer chooses to call it. He also went on to explain the theoretical basis for tenancies, including periodic tenancies. The case is of much significance in the area of lease law throughout much of the common law world.

Upon referring to this case, it is important to note that although a landlord is naming the document a licence, if the above terms are incorporated into the licence, i.e. exclusive possession with a term certain at a full market rent, calling the document a licence is only a way for the landlord to steer clear of the laws that govern leases under the Landlord and Tenant act 1954.

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