Devi v Francis

Equitable doctrine of irrevocable license and its applicability

Definition of Irrevocable license

A person in agreement with- landlord for a certain interest in land takes possession of said land under the promise created by the landlord spends monies on faith to that promise shall estop the landlord from denying the promise made

 Appellant(A) Tenant Respondent(R) Landlord Respondents mother (deceased) Previous land owner ------------------------------------------------------------------------------ A stood a house on a portion Rs land The land was subsequently transferred and registered under respondents name before respondents mother death. R gave one month's notice and claimed possession on the common law ground & denies legal effect of the said tenancy agreement. A claims occupation under the doctrine of irrevocable license.

Facts of the case

 Tenancy agreement
Between A and Rs deceased mother, before the land was transferred to the Respondent.

2nd agreement - Tenancy of sale Clause 4: If the owner shall decide to sell the said land, the portion of such land on which the said land house is built shall be sold to the purchaser if the purchaser shall so desire.

 Whether the licence or tenancy Issues granted to the appellant had by being coupled with an interest in the land become irrevocable? Whether English equity can be imported into local land law? How long is the duration of the irrevocability?

Judgment/Held
"The rule of law applicable to the case appears to be this: If a man, under a verbal agreement with a landlord for a certain interest in land or, what amounts to the same thing, under an expectation, created or encouraged by the landlord, that he shall have a certain interest, takes possession of such land, with the consent of the landlord, and upon the faith of such promise or expectation, with the knowledge of the landlord, and without objection by him, lays out money upon the land, a court of equity will compel the landlord to give effect to such promise or expectation. - Ramsden v Dyson

Irrevocable license
A tenancy is only that species of licence to which are attached the covenants for quiet enjoyment and for exclusive possession and if on these authorities, a licence could become irrevocable, then, a fortiori, there is a stronger case for making a tenancy irrevocable under similar circumstances.

Differentiated between the land law of England and equity

Section 3 of CLA
allows the general reception of English equity in cases where there is lacuna in the local law and where the application of English equity is suitable to local circumstances.
Section 6 of CLA

Prohibits application of land law & rules of equity relating thereto in Malaysia.

 Principles of equitable estoppel applied

Clause 4 of the agreement: contingency clause tenancy must subsist

Rejected the contention by R that English equity was not applicable to land matters in Malaysia
in view of the s.6 and s.3 of CLA

duration of irrevocability is indefinite until an offer of sale is made by R to A and rejected

Appeal allowed

Opinion
Agree! Rationale between section 6 and section 3 English equitable principles of general principles becoming rule of law

Definition of Irrevocable license

A person in agreement with- landlord for a certain interest in land takes possession of said land under the promise created by the landlord spends monies on faith to that promise shall estop the landlord from denying the promise made