1. Since September 2022, Eloise has occupied a room in a four-bedroom house owned by Bill. Her friend, Nikita also entered into an agreement, containing the same terms as that in the one signed by Eloise at the same time. Each occupant has the use of one of the bedrooms and shares the common areas of the house with the others. Each agreement is described as a 'Licence Agreement' and both Eloise and Nikita are charged a monthly 'Licence Fee'. The fee varies according to the number of occupants in the house. If any of the four bedrooms are vacant, then the fee for the other occupants is increased to make up the shortfall. Similarly, the agreement also provides that the occupants could be jointly or severally liable for the amounts owing if one of the occupants fails to pay their fee.

Two other notable clauses in the agreement state that Bill retains a set of keys to the property to allow him to access it; and that he reserves the right to move in occupants to each of the rooms if they become available.

Last week, Bill informed Eloise and Nikita that two new housemates will be joining them at the end of December to occupy the other two rooms. Eloise and Nikita are unhappy about this as they have enjoyed having the house to themselves and objected to Bill's plans. They argued that they occupy under a lease not a licence.

Advise Bill as to whether the occupants are lessees or licencees.