LAW Essay Example | Topics and Well Written Essays - 2500 words

LAW - Essay Example . .But the classification of the agreement as a lease does not depend upon any intention additional to that expressed in the choice of terms. It is simply a question of characterising the terms which the parties have agreed. This is a question of law.†2 Traditionally in determining whether or not the arrangements between Botolphs Investments plc and Alfred Micawber constitute a tenancy or a license it will be necessary to look a the factual background and discern whether or not the intent of the arrangements was to give Alfred Micawber exclusive possession of the shop. If so, the agreement was a tenancy rather than a license.3 Lord Denning stated in Shell-Mex & BP Ltd v Manchester Garages Ltd [1971] 1 WLR 612 that: â€Å"Broadly speaking, we have to see whether it is a personal privilege given to a person (in which case it is a licence) or whether it grants an interest in land (in which case it is a tenancy). At one time it used to be thought that exclusive possession was a decisive factor. But that is not so. It depends on broader considerations altogether. Primarily on whether it is personal in its nature or not.†4 This submission by Lord Denning was merely an extension of his ruling in Isaac v Hotel de Paris Ltd [1960] 1 WLR 239 where he broadly held that exclusive possession was not the only consideration.5 Although the law changed somewhat it has once again been restored to the resolution of the question of exclusive possession. â€Å"In my opinion the agreement was only ‘personal in its nature’ and created ‘a personal privilege’ if the agreement did not confer the right to exclusive possession of the filling station. No other test for distinguishing between a contractual tenancy and a contractual licence appears to be understandable or workable.†6 The right to exclusive possession is the pivotal test for which to determine whether on not the agreement between Botolphs Investments plc and Alfred Micawber constitutes a tenancy as opposed