Contractual licence coupled with an equity

In Binions v Evans ([1972] Ch 359 CA (Eng)) an employer had granted an employee’s widow a right to live in a cottage for the rest of her life. They sold the cottage ‘subject to’ the agreement with the widow. The purchasers, Mr and Mrs Binions, then tried to evict the widow. Lord Denning MR held that the purchasers who had notice of the agreement and may have paid a reduced price because of it, held the property on constructive trust for the widow. They could not evict her. The other judges in the Court of Appeal reached the same result but employed different reasoning. Lord Denning’s approach would amount to an exception to the rule that licences do not bind third parties.

Michael Lower

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2 Responses to “Contractual licence coupled with an equity”

  1. VIVIAN FAITH Says:

    I appreciate……….. nice work

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