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
