Homer has just landed a new contract to supply V Engines products to a large car manufacturer. The contract is very lucrative and could potentially run for 3, 5 or 7 years depending on sales. Homer therefore needs additional premises to deal with the orders and his current landlord has offered him the unit adjacent to his current one. The landlord has said he is happy for Homer to occupy under a lease or a licence and will ask his solicitor to draft up the document once Homer confirms which he would prefer and some basic heads of terms.

Please advise Homer of the relevant statutes and bear in mind the variable contract term so some flexibility in relation to the term of occupation (of the premises) will be required.