Part A
In April 2024, Kyle purchased Greenacre from Kana. Greenacre consisted of a large house with a substantial garden and a swimming pool. Kyle sought the advice of a solicitor but felt the consultation fee was too expensive, so she decided to arrange the conveyance privately.
When she moved in, she realised that Kana removed the following items from Greenacre.
Last month, a local recreation (boxing) club approached Kyle to buy the garden and convert it to a boxing venue. They offered her £100,000 to Kyle which he agreed to. She and the head paint-baller, Kim, the solicitor representing the boxing club had shaken hands on the deal and to confirm their arrangement. Kim had written on the back of an old envelope:
‘This confirms what we agreed on 30th September 2024.’
Both Kyle and Kim both signed the back of the envelope. The paint-ballers have since spent £40,000 digging trenches and erecting shooting platforms but now Kyle has decided that he would rather not have a lot of noisy people running around and shouting on Sunday mornings.
Advise Kyle, critically analysing the legal issues raised by these events and referring to legal principles, case law and statute as appropriate.
Part B
Danielle owns a two-bedroom house in Woodley near West End College. She decides to help her son, Claude, out of his current financial difficulties by letting him use the house to raise income. She gives him a ten-year licence of the house. Claude advertises the house on the notice board in the College bookshop. Lauren and Ian, who are about to start the second year of their fashion degree, sign identical ‘licence’ agreements to occupy the house. The agreement, which is stated to be for ‘two years or until the completion of your degree programme’, contains the following provisions:
a) Half of the total monthly licence fee of £2,000 is payable on the first day of each month;
b) Claude’s son, Mick, may use the sofa bed in the lounge to stay overnight whenever he has to work late in the city.
c) Claude is to retain a set of keys to the house.
d) Claude will arrange for clean towels and bed linen to be delivered to the house once a week.
Claude does not realise that Lauren and Ian are a couple and assumes that they will occupy different bedrooms. In fact, they share the same room. Before signing the agreement, Lauren asks Claude how often Mick is likely to need to use the sofa bed and why he (Claude) needs to retain a set of keys. Claude says that on the rare occasions that Mick would need to stay he would always ask Lauren and Ian first. He also explains that he is retaining a set of keys for the house just in case there is some domestic emergency.
Critically analyse, giving reasons, whether Claude has created a lease or a licence in favour of Lauren and Ian?
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