Legal advice: Advertising hoardings

By thePublican.com's team of legal experts from London solicitors Joelson Wilson.​

A court case reported recently dealt with the question of whether a company taking sites for its advertising hoardings is given a tenancy - with a right to keep its ads on site indefinitely - or just a licence, which the landowner can bring to an end on short notice. This is relevant if a pub is approached by such an advertiser wanting to put up a hoarding on the licensee's building or land and offering a juicy rent for the privilege.

First remember that if you are a lessee your lease may stop you allowing signs on your land, at least without getting your landlord's consent. As a freeholder, you might need your mortgagee's consent.

The case in question was brought by Clear Channel (previously known as More O'Ferrall) against Manchester City Council and related to several sites in Manchester.

The circumstances of each contract were different, but for most of them the judgment of the court was that no tenancy was granted. This was because the contracts did not give a clear definition of the actual location of the sites. The council surveyor dealing with the advertiser was also very vague about the precise position in which the hoardings were to be placed, just chalking out a wide area inside which they could be erected.

The case should not, however, be taken as a ruling that advertisers' contracts are just licences which can be easily brought to an end. At some of the other sites disclosed in the Manchester case, Clear Channel was reckoned to have exclusive use of a defined piece of land, on which it had maintained the hoardings and regularly changed the advertising material. The court said it had a tenancy.

The next question was whether Clear Channel was carrying on a business. An advertiser's business is the displaying of advertisements, so Clear Channel was carrying on a business on those plots of land, even without an office desk, employee or cash register in sight. That meant its tenancy was a business tenancy and gave the company the right to ask for a new tenancy when the first term ended.

The city council was fortunate in the first cases reported, because the court was persuaded that the agreements were too vague and the hoarding sites were not clearly defined.

But if you are offered a deal by a company wanting to erect advertising panels somewhere on your property, you should not sign on the dotted line without taking advice. If you do, you might be stuck with its ads forever.