Thomas v Sorrell (1673) Vaugh 330

Facts

• The case concerned a dispute over the use of land during the 17th century in England.
• The plaintiff claimed a leasehold interest in the property, asserting rights to exclusive possession.
• The defendant contended the arrangement constituted only a licence rather than a lease.
• The court examined the terms of the agreement and the intentions of the parties to determine the nature of their arrangement.
• The outcome hinged on whether the agreement granted a temporary permission or a more permanent interest in the property.

Issues

1. Whether the arrangement between the parties constituted a lease or a mere licence.
2. How to distinguish a licence from a lease based on the parties’ intentions and the terms of their agreement.
3. What rights and obligations arise from each type of arrangement in property law.

Decision

• The court held that a lease grants exclusive possession for a specified term, creating a proprietary interest in the land.
• It determined that a licence is a personal, revocable permission to use property, without conferring exclusive possession or proprietary rights.
• The judgment clarified that the intention of the parties, as expressed in the agreement, is central to distinguishing between a lease and a licence.
• The court emphasized that licences can be revoked at the grantor's discretion, whereas leases provide stability for the fixed term agreed.

Legal Principles

• A lease bestows exclusive possession and creates a legal estate in the property for a term.
• A licence confers only a personal right to use land, is generally revocable, and does not grant exclusive possession or a proprietary interest.
• The parties’ intentions, as evidenced by their agreement, are fundamental in determining whether an arrangement is a lease or a licence.
• Written agreements serve an important role in avoiding ambiguity regarding the classification of property interests.
• The distinctions established in this case guide modern applications of property law and statutory interpretations.

Conclusion

Thomas v Sorrell (1673) Vaugh 330 established the basis for distinguishing between leases and licences in English property law, clarifying the legal consequences of each and the significance of exclusive possession and the parties’ intentions—principles that continue to influence property law today.