Question
Brandon owns an organic food store at 8 Mona Street Hawthorn, Melbourne. His neighbour, Jemima, owns a wholesale dry goods business, to supply local restaurants,
Brandon owns an organic food store at 8 Mona Street Hawthorn, Melbourne. His neighbour, Jemima, owns a wholesale dry goods business, to supply local restaurants, run out of a factory at 12 Mona Street. Between the two premises at 8 and 12 Mona Street there is an empty factory building (10 Mona Street) which was also owned by Jemima. In March 2010, Jemima and Brandon executed a 20-year 'Occupation Agreement' concerning the factory building. For a monthly fee of $500, the agreement allows Brandon to use the factory to store crates of produce and dry goods for sale to the public. The agreement provides that Jemima is to be the sole provider of dry goods sold at Brandon's shop. At the time of the agreement, Jemima was concerned about protecting her commercial reputation by ensuring that the dry goods were stored and displayed appropriately for sale. To that end, the agreement includes the following terms: Clause 5: Jemima hereby grants to Brandon a licence to use the factory only as a store/display area for dry goods and crates of organic produce. Nothing contained in this agreement shall be construed as granting any estate or interest in the land to be occupied by Brandon. Clause 6: Brandon shall permit Jemima and her authorised representatives to enter and inspect the land at any time outside business hours. In June 2010 with Jemima's consent, Brandon created an opening between his store at 8 Mona St to the factory at 10 Mona St, and locked the other doors so that customers only had access to the food store/display area through his shop. Jemima was able to access 10 Mona St from an existing doorway into her factory. During the renovation works, Brandon said to Jemima: 'I know you want the dry goods to be displayed well, like a grain store, to be attractive to customers shopping in my organic produce store, so feel free to use your access door to inspect them whenever you like'. However, Jemima rarely did so as she did not want to disturb Brandon. In August 2021, Jemima passed away after a long illness. Her daughter, Elka, inherited the dry food store and adjacent factory, which she operates as her own business. Brandon comes to see you for legal advice. Bradon wants to expand the range of dry goods sold at his store to more than is offered by Elka's business. REQUIRED: Advise Brandon (a) whether the 'Occupation Agreement' that he signed with Jemima is a lease or a licence (2 marks) (b) whether Elka can enforce the exclusive supply arrangement contained in the Occupation Agreement against him (6 marks)
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