Ashburn Anstalt v Arnold [1989]  Ch 1  Court of Appeal

Arnold occupied premises for the purpose of running a retail outlet. The shop was part of a complex that was to be redeveloped by the owners.  Arnold sold his lease to Matlodge and was permitted to remain in occupation rent free until given a quarters notice to quit. There was however, no specified maximum duration which would mean the occupation was potentially capable of lasting forever. The question for the court was whether the agreement created a tenancy.

Held:

The agreement was a tenancy. The case of Lace v Chantler was distinguished the question was not whether there was a fixed maximum duration , but whether the lease terminated on a sufficiently certain event.  The giving of a quarter’s notice was sufficiently certain.

NB this was point was overruled in Prudential Assurance v London Residuary Board

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