Facts
- A married couple separated, leading to divorce on the grounds of the husband's adultery.
- After the husband left the matrimonial home, the wife remained in occupation of the property.
- The husband had told the wife she could “always live there,” upon his departure.
- The wife claimed this statement granted her an irrevocable license to reside in the home for life.
- The County Court upheld the wife’s claim, finding her license irrevocable under common law.
- The husband appealed, arguing that any license granted was revocable as there was no consideration or formal contract.
Issues
- Whether the wife's continued occupation of the matrimonial home after divorce constituted an irrevocable license or merely a bare license.
- Whether a statement by the husband, absent contractual intention or consideration, could create a legally binding right for the wife to occupy the property.
- Whether the lower court was correct in holding the wife's license to occupy as irrevocable.
Decision
- The Court of Appeal overturned the County Court’s decision and held that the wife's license was a bare license and therefore revocable.
- The statement that the wife could always live there was interpreted as permission only, lacking the elements of a binding contract.
- The court clarified that only a license supported by contract or consideration could be irrevocable or enforceable.
- The wife had no continuing legal right to occupy the property after revocation of the license.
- The court drew a distinction between personal permission (a bare license) and a contractual right or interest in land.
Legal Principles
- A bare license grants a personal right to occupy or access land, but is revocable at the will of the landowner.
- Without contractual intention and consideration, promises regarding occupancy do not confer an enforceable right.
- Bare licenses, as distinct from contractual or proprietary rights, do not pass an interest in land and provide limited protection to licensees.
- Previous case law such as Thomas v Sorrell (1673), Winter Garden Theatre v Millennium Productions [1948] AC 173, and Errington v Errington [1952] 1 KB 290 were referenced to clarify distinctions between licenses and property rights.
- The concept of license “coupled with a grant” contrasts with a bare license; only the former involves transfer of a property interest.
- Comparisons were drawn with contractual doctrines and multi-occupancy scenarios, emphasizing that mere permission absent a contract offers no assured right of occupation.
Conclusion
The Court of Appeal’s decision in Vaughan v Vaughan established that a bare license, without consideration or contractual obligation, is revocable at will by the grantor and does not create a legally protected right to occupy property. The case highlights the importance of formal contracts for securing occupancy rights and distinguishes permissive occupancy from proprietary or contractual interests in land.