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King v David Allen [1916]

Facts

  • The lessee of a cinema granted a licence to an advertising company to place adverts around the cinema for an annual fee
  • The tenancy was bought to an end, causing the old tenant to breach the licence agreement, and a new tenant went into occupation of the cinema

Issue

  • Was the licence enforceable against the new tenant?

Decision

  • No

Reasoning

  • Contractual licences create merely personal obligations, so the advertising company would be entitled to damages for breach of contract
  • Licences do not bind successors (with the exception of personal representatives)
  • This is the orthodox House of Lords position on licences and their effect on successors
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