Ashburn Anstalt v Arnold 
This case attempted to reverse the rule that prospective certainty is required in the creation of a lease in favour of retrospective certainty. It was reversed in Prudential Assurance v London Residuary Body , upholding the original rule in Lace v Chantler .
The case is, however, good law for the proposition that a contractual licence cannot bind successors, unless a constructive trust is created as a result of that licence. A constructive trust will be created where the conscience of a purchaser is affected, and will require more than mere disclosure of a licence. Paying a lesser purchase price may be a factor capable of affecting a purchaser’s conscience.
Posted in Land Law Revision Notes.
This page was last updated on 24th April 2015
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