[C]areerInLaw.net
ContractCourt of Appeal

Errington v Errington and Woods [1952] 1 KB 290

Topics:Offer & AcceptanceLeases & Licences

Facts

A father bought a house with a deposit and mortgage and allowed his son and daughter-in-law to live there. He promised that the house would become theirs if they paid off the mortgage. They began making the required payments without expressly promising to complete every instalment. After the father died, his widow sought possession, while the daughter-in-law continued the mortgage payments. The dispute concerned the status of the promise and the occupier's protection during performance. It required the court to distinguish a completed right to ownership from the contractual permission to remain while fulfilling the stipulated condition.

Legal Issue

Could the father's promise and permission to occupy be revoked after mortgage payments began, while the stipulated performance continued following his death?

Held

The Court of Appeal held that the promise could not be revoked so as to eject the occupiers while the stipulated mortgage payments continued. The father's arrangement was unilateral: the promised transfer would be earned by paying the mortgage, without an express promise by the couple binding them to complete those payments.

Their commencement of the requested performance nevertheless protected them against the offer being withdrawn in disregard of the arrangement. The right to remain was linked to continued performance and did not immediately give them unconditional ownership. The widow claiming through the father could not obtain possession contrary to that protection. The case should not be read as establishing that every contractual licence creates a proprietary interest binding all subsequent purchasers.

⭐ Legal Principle

Commencing the requested performance of a unilateral promise may prevent the promisor revoking it while performance continues. The full promised benefit remains conditional on completion. A contractual right to occupy should not automatically be equated with ownership or a proprietary right enforceable against every third party.

Significance

Errington connects unilateral offers with an agreement permitting occupation of a home. It distinguishes protection during performance from entitlement to the promised transfer after completion. Daulia later discussed an implied obligation not to prevent completion of a unilateral bargain. The property aspect requires care: the case is not authority that all contractual licences run with land. Questions about successors, formalities and proprietary estoppel should be considered separately where the facts require them.

Common exam questions about this case

Why was no express promise to pay the whole mortgage necessary?

The father offered the property in return for the act of paying the mortgage, making the arrangement unilateral. Acceptance of the full benefit depended on performance rather than a reciprocal promise to complete. Starting the payments nevertheless gave protection against revocation while the stipulated performance continued.

Did beginning payments make the couple immediate owners?

No. The promised transfer remained conditional on completing the mortgage payments. The court protected continued occupation during performance, which is different from awarding unconditional ownership at the start. An answer should identify both the interim protection and the condition which still had to be fulfilled.

Does Errington make every contractual licence binding on a purchaser?

No. The widow's position in this family arrangement does not establish a universal proprietary status for contractual licences. A new case involving a purchaser requires separate analysis of the rights created and the rules governing successors. The contractual promise alone should not be treated as automatically running with the land.