A contractual licence is not binding on a third party

A contractual licence is not binding on a third party (such as a creditor with a charging order over the land).

In Lau Chun Ming v Ma Koon Sik ([2006] HKCU 1270) Mr Lau had obtained a charging order over land owned by Mr Ma. Mr Lau sought vacant possession and sale of the land. A third party claimed that it had the benefit of a contractual licence over Mr Ma’s land created before the charging order and resisted the making of an order. It claimed that Mr Lau’s physical inspection of the site must have alerted him to the existence of the licence.  It was held that the charging order was not subject to the licence. A contractual licence does not bind third parties. Deputy High Court Judge Gill relied on  a statement in Halsbury’s Laws of Hong Kong that damages are the only remedy for breach of a contractual licence.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s


%d bloggers like this: