Marcroft Wagons Ltd v Smith [1951]
Acceptance of rent from a person whom the owner of a house allowed to stay in it did not create a tenancy as the parties had not intended to create legal relations.
Out of genuine kindness, a owner of a house allowed the daughter of a deceased tenant to remain in occupation of the property for six months following the tenant’s death. The owner expressly refused to add the daughter’s name to the rent book, despite accepting two weeks’ rent. The daughter contended that the acceptance of rent meant that she had been granted a new tenancy.
HELD: The Court of Appeal held that there was no tenancy, and this was approved in Street v Mountford on the grounds that no intention to enter into a contract and to create legal relations had been evidence by the parties.
Although rent had been paid and accepted, there could not be a tenancy because the parties had not intended to enter one.
Citation: Marcroft Wagons Ltd v Smith [1951] 2 KB 496