Antoniades v Villiers [1988] UKHL 8

Facts

• Mr. Antoniades and Miss Villiers, as a couple, jointly applied to occupy a flat under separate but substantially identical agreements labeled as licenses.
• Both agreements contained clause 16, reserving the landlord's right to use the premises and to permit others to occupy alongside the named occupiers.
• The agreements were interdependent; the occupancy by one was conditional upon the occupancy by the other.
• Despite the license label and clause 16, the couple occupied the flat jointly and exclusively.
• The landlord later sought to remove the couple, prompting a dispute over whether the agreements constituted leases or licenses.
• The House of Lords examined the practical reality and determined that, despite their form, the agreements granted exclusive possession and constituted a lease.

Issues

1. Whether agreements labeled as licenses, but granting exclusive possession, create a lease for statutory protection.
2. Whether clause 16, purportedly allowing the landlord to share occupation or introduce others, was a genuine term or a pretence.
3. Whether interdependent agreements between multiple occupiers indicate joint exclusive possession amounting to a lease, rather than separate licenses.
4. How the approach in this case differs from situations involving independent agreements, such as AG Securities v Vaughan.

Decision

• The House of Lords held that the agreements granted a lease, not a license, based on exclusive possession and the interdependence of the arrangements.
• The license label and clause 16 reserving rights for the landlord were found to be a pretence and not a true reflection of the agreement's nature.
• The court prioritized the substance of the occupation over the form, negating sham or artificial terms intended to circumvent the Rent Acts.
• Comparison with AG Securities v Vaughan clarified that independent agreements lacking joint exclusive occupation create licenses, not leases.

Legal Principles

• The presence of exclusive possession is a decisive element distinguishing a lease from a license, regardless of the labels used by parties.
• Courts will disregard artificial terms or "pretences" that are not intended to be genuinely exercised.
• Interdependence of agreements for multiple occupiers suggests a joint tenancy or lease, as opposed to independent licenses.
• The true substance and reality of the arrangement override any contrary wording or formal labels in the agreement.

Conclusion

Antoniades v Villiers [1988] UKHL 8 solidified that courts will look beyond the language and form of occupancy agreements, prioritizing exclusive possession and the genuine intention of the parties. Agreements granting exclusive possession and reflecting interdependent occupancy arrangements will be treated as leases, thus affording statutory protection, even if couched in the form of licenses with artificial terms. This precedent prevents evasion of tenant protection through sham clauses and sets a benchmark for distinguishing leases from licenses in property law.