Ashburn Anstalt v Arnold [1989] Ch 1

Written By Nicolas Heyes

Court: Court of Appeal

Basic Facts: Arnold occupied premises under a contractual license, and the property was sold to a third party, Ashburn Anstalt, who sought to remove Arnold.

Issue: Does a contractual license bind a purchaser?

Held: The court found that a contractual license could give rise to a proprietary interest, capable of binding successors in title, depending on the circumstances of the agreement.

  • (Fox LJ):

    • A contractual license alone does not create an interest in land. However, if the purchaser is aware of the license, it might be binding through a constructive trust.

Nicolas Heyes
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