Before purchasing Groveland, Grace owned a two-bedroom house in Woodley near West End College. She decides to help her son, Ben, out of his current financial difficulties by letting him use the house to raise income. She gives him a ten-year licence of the house. Ben advertises the house on the notice board in the College bookshop. Thomas and Bella, who are about to start the second year of their fashion degree, sign identical ‘licence’ agreements to occupy the house. The agreement, which is stated to be for ‘two years or until the completion of your degree programme’, contains the following provisions:
a) Half of the total monthly licence fee of £2,000 is payable on the first day of each month;
b) Ben’s son, Tiger, may use the sofa bed in the lounge to stay overnight whenever he has to work late in the City;
c) Ben is to retain a set of keys to the house;
d) Ben will arrange for clean towels and bed linen to be delivered to the house once a week.
Ben does not realise that Thomas and Bella are a couple and assumes that they will occupy different bedrooms. In fact they share the same room. Before signing the agreement, Bella asks Ben how often Tiger is likely to need to use the sofa bed and why he (Ben) needs to retain a set of keys. Ben says that on the rare occasions that Tiger would need to stay, he would always ask Bella and Thomas first. He also explains that he is retaining a set of keys for the house just in case there is some domestic emergency.
Discuss whether Ben has created a lease or a licence in favour of Bella and Thomas.
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