Macroeconomic Aims of a Government Essay Example for Free

Macroeconomic Aims of a Government Essay The government and policymakers of a country intervenes in the economy in order to achieve economic growth, price stability, and low rate of unemployment. First and foremost, economic growth can be defined as an increase in the countrys output over a period of time. This means there is an increment in her productive capacity hence a rise in national income. A high economic growth is desirable as it represents an improvement in the material standard of living of the society. A rising real income per head brings about more and better quality goods and services, which are available for consumptions of individuals. However, an improvement in the case of consumer welfare due to economic growth is highly doubtful if the growth is accompanied by undesirable side effects such as negative externalities, leisure time forgone or even a dilution in the societys tradition custom. Through redistribution of income, economic growth can eliminate poverty. A higher output allows households to enjoy more goods and services thus generating higher income and through the multiplier effect increases national income by folds. Besides that, the governments tax revenue will rise too, leading to more benefits for the poor such as education and training. This may even help curb the problem of poverty. The authority also highly regards sustaining a stable price level as a primary objective of economic policy. This is because inflation, defined as a sustained and inordinate increase in the general price level, could have harmful effects both socially and economically. A rising price level creates uncertainties and complicates decision-making, thus may hamper economic growth. Fluctuations in the level of prices makes information conveyed by prices harder to interpret. Consumer, firms, and the government may face a tough time in allocating funds or resources for the future in an inflationary environment. Furthermore, as the society strives to maintain its real value of income by keeping up with rising price level and competing with other social classes, the countrys social fabric could be severely strained. The mere existence of inflation means that the real value of money is falling. Thus, it will be necessary for the government to intervene in  the economy in order to prevent hyperinflation from happening. The countries that experienced the most extreme examples of trotting inflation are Argentine, Brazil and Russia. The slow growth brought about eventually crippled virtually the entire economic system. Every government places a low rate of unemployment at the top of its priority. The percentage of total labor force unemployed makes up the rate of unemployment. Economic costs of unemployment can be devastating, as it could mean a lower Gross Domestic Product (GDP) to loss of potential income to factors of production, whilst social costs such as increased poverty, personal hardships to individuals, decay of unused skills, raise in crime rates and family disputes prove the worthiness of the goal of achieving high employment. On the other hand, stability of a countrys exchange rate in the foreign exchange market (FOREX) is vital, as fluctuations of the exchange rate create adverse effects to the economy. There are mainly two cases which are prevalent in most economies. Firstly, an appreciation of the exchange rate may cause exports to become relatively dearer, and lead to loss of competitiveness (comparative advantage) to a country. Secondly, a depreciation of the exchange rate brings about serious domestic inflation, encourages exodus of capital and thus puts the country under stress of lack of investment and unemployment. On the external aspect, the government aims to achieve equilibrium in the balance of payment, especially the current account. A deficit in the current account drains the savings and reserve of a country significantly, leading to a chain effect of higher national debt and burden to future generations. In view of the above objectives, the government is needed to regulate and rectify situations. Therefore, the conclusion can be arrived that government intervention is fundamental to every economies in the world.

Condoleezza Rice Essay -- Politics Political

Condoleezza Rice   Ã‚  Ã‚  Ã‚  Ã‚  At this point in time the name and image of Condoleezza Rice is commonplace among the majority of informed Americans. As the first female to serve as the National Security Advisor to the President of the United States, Dr. Rice was propelled even further into the spotlight following the attacks on America on September 11th 2001. I too, like most Americans, saw a lot more of Condi, as she is known by her many friends and colleagues, after September 11. Clearly she was intelligent and always remained calm and poised in the face of adversity and standing before the cameras. I also noticed and appreciated her articulation and was even moved by what seemed like her stoic yet compassionate presentation. It was not until I read Dr. Rice’s biography, Condi, by Antonia Felix, however that she gained my utmost respect. By the 21st century a black successful black female is not as uncommon as it was fifty years ago. Black women had fought their way to the top in many arenas, including political such as the U.S. Senate. What is truly amazing about Condi’s story is speed and finesse with which she ascended to the top of everything she took on. An endearing friendship and mutual loyalty with both of the George Bushes surely did not hurt her. Condi’s  Ã‚  Ã‚  Ã‚  Ã‚   success was hardly limited to the world of politics. She approached music, fitness, academics, sports, religion, and family with the same decisiveness, consistency, and determination that she brought to the public sector. Condi is also no stranger to controversy. Now more than ever she faces a host of critics, especially regarding her supposed knowledge of possible terrorist threats before they came to pass on September 11. Her Republican politics made her less than popular among African Americans although she maintains a more liberal perspective on social issues and remains pro-choice. In spite of her ups and downs it is ultimately her unfaltering character to which sh e can attribute her success as well as her status as what many call the most powerful woman in politics.   Ã‚  Ã‚  Ã‚  Ã‚  The high academic pursuits of the Rice family did not exactly begin with Condoleezza and her generation. The foundation of this idea can be seen in chapter 2 of her autobiography in which the author begins the chronological record with a look at Julia Head Rice. Julia was born into slavery, albeit house slavery which was h... ...onsibilities were never ending and she approached them with the same grace and drive as she does everything in her life. Although the book end its documentation in 2002, shortly after 9/11, Condi’s duties have become no less urgent. Since that time she has had to defend her Administration against suggestions that the attacks could have been prevented and has done so quite well. The 2004 elections have just been completed and George W. Bush is returning to the White House for another term. Former Secretary of State Colin Powell has submitted his resignation and Condoleezza Rice has been nominated as a predictable replacement. If she survives the Senate approval hearings she will become the first black female and second female to fill the role. While I have full faith in her abilities I am concerned with the fact that without Powell in the National Security Council there will be no dissenting opinions. The proposed administration is politically homogenous. Surely Dr. Rice wo uld understand this concern as she herself is quoted in the opening lines of chapter 8 of her biography as saying â€Å"If you find yourself in the company of people who agree with you, you’re in the wrong company.†

An Investigation Into Smes Survival and the Discrimination Between Fgsmes and All Other Smes

Introduction In a competitive global market, micro, small and medium-sized enterprises (SMEs) play an increasingly important role in a nation’s economy. Today they make a substantial contribution to job creation, innovation, as well as entrepreneurial skills. A report conducted by European Commision(2005) stated that in the enlarged European Union of 25 countries, 23 million SMEs provide about 75 million jobs and account for 99% of all enterprise. SMEs are also the vital attributes for lifting the productivity of economy. This is primarily because SMEs are been considered as having a key role to play in providing new products. Take UK for example, SMEs have become more and more dynamic. SMEs have enjoyed higher productivity growth than large firms since 1998, and the proportion of SME employers reporting that they have undertaken either product or service innovation in the past 12 months has increased from 32% in 2005 to 48% in 2006(BERR,2002). An important aspect of SMEs, especially for the young SMEs, is their survival rate, according to Haugh and McKee(2000), survival means continue to exist in the future. Although we have seen a large increase in new company formations and higher levels of their survival rates than the past, we cannot neglect the fact that the rate of failure of these SMEs is also very high. Some of the firms fail in their infancy stage and some fail within several years after start-up. Some statistics suggest that the failure rate of SMEs in their first five years is more than 50% (Reiss, 2006). There are many reasons that contribute to SMEs’ failure: insufficient capital, poor management skills, poor human resources, lack of innovations and so on. Factors that contribute to small business survival and non-survival In order to prosper, all SMEs need to ensure that they are alert both to opportunities for achieving success and threats to their survival. Only when the company are aware of and deal with these factors correctly, they can survive, grow and succeed. 1. Financial circumstances 1. 1 Access to Finance Obtaining the right finance is a pivotal factor to a new firm’s survival and high growth. For SMEs, there are various types of finance available, including bank loans, borrowing from family and friends, obtaining equity investment from business angels, venture capitals and so on. Obviously, different options have different profits and constraints. The advantage of loan finance is that it will not dilute ownership structure of the firm. However, excessive reliance on loan finance could be a financial threat to their firm’s solvency. Astebro and Bernhardt (2003) stated that there was a significant negative correlation between having a bank loan and the survival of the business. Since loan means a continuing obligations for the firm to repay the principal debt and associated interest on a predetermined timetable. This kind of loan covenants can place strain on a firm’s cash flow position, if a firm’s capital contains a high proportion of debt, then the firm has to generate more cash to cover the repayment obligations, however it may have greater threat to default due to a sudden interruption in income. 1. 2 Financial Health A critical reason for SMEs’ failure is that they cannot identify and react to threats to their financial healthy. For example, the substantial increases in overheads could be a threat to financial healthy since it is a signal of weak cost management. Significantly increasing overheads will reduce the available cash flows and profits, eventually reduce the probability of survival. According to Schaefer (2006), over-expansion is a leading cause of business failure. This often happens when business owners confuse success with how fast they can expand their business. A large amount of bankruptcy is due to rapidly expanding firms. Birley and Niktari (1995) found that, in the opinion of many accountants and bank managers, 70% of SMEs failures were caused by a very large extent to being under-capitalized, to short-term liquidity problems or insufficient working capital. So in order to survive, firms have to look out for financial threats to the firms’ solvency and maintain effective management control over their finances. 2. Human capital In most SMEs, power is centralized in the hands of the owner-managers and the owner-managers always play multiple roles in a company, including general manager, sales manager, production manager, financial manager and so on, so that characteristics of the owner-managers, such as education background, family business background, personal goals, previous work experience, strategic awareness have a significantly impact on firm’s activities and performance. Several studies indicate that in SMEs, the personality of the owner-managers is a critical determinant of corporate structure and strategy(Miller and Droge 1986; Miller and Toulouse 1986). Owner-managers who are inability to motivate staff, rarely listen to others’ advices, have little knowledge of marketing strategy, finance, and personnel management may act as a significant constraint to SMEs’ survival. On the other hand, owner-managers are not experts at everything, many owner-managers in small firms are lack of the leadership and management skills which are necessary for the firms’ survival and growth. Deakins and Freel (1998) found that one of the critical factors in the success of a SME was the ability to build an ‘entrepreneurial team’. The presence of a diversified management team may imply a greater variety of complementary skills: marketing skills, business skills, as well as technological skills, this is also crucial for SMEs in relation to the long term success of the firm. So building a entrepreneurial team will definitely increase SMEs’ viability. 3. Over-dependent Some firms do not have the appropriate strategy and become excessive reliance on a single customer or a small client base. The more a firm relies on a particular client, the more possibly it is damaged by factors out of its control than if it has a wide client base. Natwest (1997) stated that an important reason for SMEs failure is over-reliance on one or two customers and lack of sales. Failures often occur due to firms’ sole customer withdrawing its orders or going bankrupt. The same principles also apply to a firm’s supplier base. If there is a breakdown in the commercial relationship between the firm and its single supplier, the prodution of the firm will be damaged. As a result, if a young firm wants to survive, it should seek to cultivate a wide client (supplier) base instead of depending on a small number of regular clients (suppliers). However diversification strategy can realize this. Diversification across production and services can satisfy different types of customers and reduce the probability of over-dependent. 4. Training One of the factors that contribute to SMEs failure is low level of management performance and inefficient operation, which is a result of lack of training. It is generally acknowledged that the majority of the small-firm owners run their business just based on their own experience and common sense, without getting professional or other formal qualifications. Stanworth and Gray (1992) pointed out that minority of small-firm owners who participate in management training tend to have better educational qualifications, and their businesses have better survival and growth rates than other small firms. Also, Kitson and Wilkinson (1998) found a positive link between training and innovation and growth, as training was provided by 60% of innovating firms but only 41% of non-innovators, and 72% and 68% of medium and fast-growing firms, respectively, compared with 46% of stagnant and declining firms. Training could cover a wide range of areas including accessing to and managing finance, cost management, personnel management, marketing strategy, information use and retrieval, operation management and so on, which equip small-firm owners and employees with the skills necessary to survival and the further growth. So training is also an important factor that contributes to small firms’ survival which can be easily ignored. 5. Innovation In this era of knowledge economy, innovation become inextricably linked with a firm’s survival, successful entrepreneurship always relies heavily on innovation. It is extremely important for new small firms who still enter industries where economics of scale plays a critical role, by innovation small firms could compete on the basis of added value, therefore enhancing the likelihood of survival. On the other hand, innovation intrinsically linked with a company’s diversification strategy, through innovative activity, firms have the chance to produce new products and services so that they can attract more customers and increase their market share. Also, cost reduction can be achieved by innovation in operation processes, marketing and organizational forms. For example, in order to expand, some firms may choose a strategy called e-marketing to reduce cost, they may create a impressive and special site to grab people’s attention, on the website, a convenient online selling system is provided. Also, the firm may send their new products and services details to their target customers and potential customers, sometimes combining with even fun facts. So business innovation is especially important not only for large companies but also SMEs’ survival, lack of innovation could be a barrier to a small firm’s growth. Discrimination between fast growth firms and all other SMEs Different SME tends to have different growth rate, some of them grow rapidly and are recognized as FGSMEs(fast-growth small-to-medium enterprises). According to Caroline and Kosmas, FGSMEs are firms that achieve at least 20% annual compound sales growth over a 5-year period. Birch (1995) found that FGSMEs make up 3% of all small firms. Based on former research, there are many firm-based characteristics, which are concentrated on both customers and organizations aspects, such as satisfaction of customers, financial perspectives, staff retention, number and quality of successful innovations and so on, to discriminate between FGSMEs and all other SMEs. 1. Customer Focus FGSMEs are customer centric, regularly receiving feedback from clients and taking their requests and complaints seriously into consideration (Tan, 2007). They always try to retain clients through improving the quality of products and services or developing new products. According to the BSC, customer perspectives focus on traditional marketing issues such as market share, customer satisfaction and service quality ratings, customer loyalty, and customer perceived value (Kaplan & Norton, 2000). 2. Financial Perspectives FGSMEs tend to spend a lot of time and effort in analyzing the financial health of their firms. On the contrary, other SMEs always analyze cash flows on a regular basis, relying on occasional ‘back of the envelope’ calculations. Financial summaries provided by accountants are used for mandatory reporting purposes instead of financial management (Barnes et al. , 1998). 3. Internal Business Perspective Internal business performance indicators contains traditional operational terms such as tender success rate, data rejection percentages, time per customer (Kaplan & Norton, 2000), on-time delivery, the number of new products launched and product defects (Zaman, 2003). FGSMEs tend to manage and examine their business processes. For example, Liaise marketing (a supermarket broker) CEO, Tony Merlino stated that their firm measures manufacturer sales, market share and store visits to make sure that their sales team operates properly and efficiently. 4. Employee Focus Kaplan and Norton (2000) pointed that innovation, learning, and growth perspectives are closely linked to improve employee job satisfaction and commitment, and develop employees’ technical ability and innovation skills. According to the previous literature, FGSMEs seem to pay a lot of attention on employees. Nicholls-Nixon, 2005; Tan, 2007). So we can see that these fast-growth firms all have a strong emphasis on making their employees as part of the performance measurement system. Staff’s ideas and feelings are very important and cannot be ignored easily. Conclusion This study aims at identifying the factors that contribute to SMEs’ survival. Finding on the study sug gests that effective financial management, outstanding leadership and training play a critical role in SMEs’ survival, while excessive depend on one or two customers(suppliers) will be dangerous and may lead to a death. On the other hand, the study makes a distinction between FGSMEs and other SMEs based on four perspectives, finally draw the conclusion that FGSMEs tend to pay more attention on customers, financial management, internal business operation and employees. REFERENCE Astebro, T. and Bernhardt, I. 2009. â€Å"Dissecting Behaviours Associated with Business Failure: A Qualitative Study of SME Owners in Malaysia and Australia†. Journal of Asian social science 5 (9): 98–104. Barnes, L. , Coulton. T. Dickinson. S. Dransfield, J. Field, N. Fisher, et al. 1998. A New Approach to Performance Measurement for Small and Medium Enterprises†. Performance measurement – theory and practice, 1, 86-92. BERR. 2002. ENTERPRISE: UNLOCKING THE UK’S TALENT. [online]. [Accessed 9th February 2010]. Available from World Wide Web: < http://www. berr. gov. uk/files/file44992. pdf> Berry,M. 1998. â€Å"Strategic Planning in Small High Tech Companies†. Long Range Planning 31(3) : 455-466 Birch, D. 1995. Who's Creating Jobs? Cambridge: Cognetics, Inc. Birley, S. and Niktari, N. 1995. The Failure of Owner-Managed Businesses: The Diagnosis of Accountants and Bankers. London: Institute of Chartered Accountants in England and Wales. Caroline, S. T. and Kosmas, X. S. 2005. Firm performance measurement in fast growth small-to-medium enterprises [online]. [Accessed 10th February 2010]. Available from World Wide Web: European Commision. 2005. The new SME definition User guide and model declaration [online]. [Accessed 10th February 2010]. Available from World Wide Web: Enterprise Britain: Growth, Innovation and Public Policy in the Small and Medium Sized Enterprises Sector. 1994–1997. Cambridge: ESRC Centre for Business Research, pp. 16–27. Haugh. M and McKee. L. 2000. Survival, independence, control: uncovering the shared values in the SME. [online]. [Accessed 12th February 2010]. Available from World Wide Web: Kaplan, R. S. , and D. P. Norton. 2000. The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment. Boston, MA: Harvard Business School Press. Kitson, M. and Wilkinson, F. 1998. â€Å"Employment structure, recruitment, labour turnover, training and labour force flexibility† in Cosh, A. and Hughes, A. (eds), Natwest. 1997. Natwest Quarterly Survey of Small Business in Britain. Small Business Research Trust Nicholls-Nixon, C. L. (2005). Rapid Growth and High Performance: The Entrepreneur's ‘Impossible Dream'? Academy of management executive, 19(1), 77-89. Noor, H. A. 2003. † Start-up financing, owner characteristics, and survival†. Journal of Economics and Business 55 (2003): 303–319. Stanworth, J. and Gray, C. 1992. â€Å"Entrepreneurship and education: action-based research and training policy implications in Britain†. International Small Business Journal 10(2), 11–23. Schaefer, P. 2006. The seven pitfalls of business failures and how to avoid them. Accessed 9th February 2010 Available from World Wide Web: www. usinessknowhow. com/startup/business-failure. html Tan, C. S. L. 2007. Sources of Competitive Advantage for Emerging Fast Growth Small-to-Medium Enterprises: The Role of Business Orientation, Marketing Capabilities, Customer Value and Firm Performance. RMIT University, Melbourne. Zaman, M. 2003. Balanced Score card Implementation in Australian Companies – an Exploratory Study of Current Corporate Practice and Strategic Intent. Paper presented at the Hawaii International Conference on Business.

The rules relating to implied grant of easement - Free Essay Example

Sample details Pages: 11 Words: 3216 Downloads: 2 Date added: 2017/06/26 Category Law Essay Type Research paper Did you like this example? The rules relating to implied grant of easements have been described as à ¢Ã¢â€š ¬Ã…“strange [and] magic-likeà ¢Ã¢â€š ¬Ã‚  (Sexton and Bogusz, Land Law: Text, Cases and Materials, 2013, 3rd edn, OUP, p 565). Disregarding easements created by prescription, explain these à ¢Ã¢â€š ¬Ã…“magic-likeà ¢Ã¢â€š ¬Ã…“ rules. Do the rules differ in the case of implied reservation of an easement and why is this the case? INTRODUCTION An easement is a right to do something on someone elses land, falling short of a right to possession. Don’t waste time! Our writers will create an original "The rules relating to implied grant of easement" essay for you Create order More specifically, it is a private right enjoyed by one property owner the dominant owner, over land belonging to another, the servient owner. Therefore, an easement imposes a burden on a piece of land (servient land) and constitutes a corresponding benefit to another piece of land (dominant land).An easement constitutes a property right in the servient land, and as such it is generally enforceable against a subsequent owner of the servient land and can be generally enforced by a subsequent owner of the dominant land. . In order to be an easement a right must fall within the criteria laid down in the case of Re Ellenborough Park[1]. The right must, (i) relate to a dominant and servient tenements, (ii) which are owned or occupied by different persons, (iii) accommodate the dominant tenement and (iv) be capable of forming the subject matter of a grant. Furthermore, an easement will accommodate the dominant tenement where there is sufficient proximity between dominant and servient tenements and where the rights benefit the estate, rather than being a personal right. For instance, in the case of Hill v Tupper[2], where the claimed right benefited the dominant tenement ownerà ¢Ã¢â€š ¬Ã¢â€ž ¢s business rather than the land, the right was incapable of being an easement. The final point takes in both the capacity of the grantor and grantee and that the right claimed falls within the range of rights recognised by the courts as being capable of amounting to easements and such rights as illustrated in the case of Webb v Bird[3], must not be vague or indefinite. Once we have established that a right has the characteristics necessary to be an easement we next need to consider whether an easement has actually been created. There are a number of ways by which an easement may be created. They may be made expressly by the parties or they may be created impliedly, the latter being what this assignment will be focusing on. IMPLIED GRANT à ¢Ã¢â€š ¬Ã‹Å"To some t his was a fiction, to others an ingenious tool. Either way, it allowed the courts to get involved in the contents of contracts without infringing the principle of freedom of contract. Based on the theory that the courts were merely interpreting the presumed intention of the parties, they could incorporate new terms where the contract was silent.à ¢Ã¢â€š ¬Ã¢â€ž ¢ Appleby in à ¢Ã¢â€š ¬Ã‹Å"Contract Lawà ¢Ã¢â€š ¬Ã¢â€ž ¢ 2001, published by Sweet and Maxwell, at page 197 There are a number of situations in which an easement may be impliedly granted or reserved as part of a land transaction. However, the courts are readier to imply a grant than a reservation, as we shall see further on. Easements arising by implied grantinitiallytake effect as equitable easements (pending the completion of the relevant lease or conveyance) but subsequently take effect as legal easements. The grant of an easement may be implied where the grantor, the owner of the servient land, disposes of part of its land. There are four ways in which an easement may be impliedly granted and these are by, (i) Necessity, (ii) Common Intention, (iii) Application of the rule in Wheeldon v Burrows[4] and (iv) s 62 of the Land of Property Act (LPA) 1925. Easements of necessity An easement of necessity may be granted by implication, where it is considered by the courts as necessary to do so. Firstly, an easement will only be implied by necessity where the estate cannot be used at all without it[5], therefore, necessity claims are usually based on claims to a right of way to à ¢Ã¢â€š ¬Ã‹Å"land-lockedà ¢Ã¢â€š ¬Ã¢â€ž ¢ land, which is a piece of land is sold off which has no direct access to the public highway system. Without the implication, of an easement by the court, the land would be inaccessible. In the case of Manjang v Drammeh[6] the criteria for there to be an easement of necessity implied were laid down and these include: First, it should be shown that there was a common owner of a legal estate in the two plots of land à ¢Ã¢â€š ¬Ã¢â‚¬Å" ie the plots were in common ownership at one stage. It must be established that access between one of those plots and the public highway can only be obtained over the other plot; and it must be shown that there was a disposition of one of the plots without any specific grant or reservation of a right of access. If there is an alternative access route then no matter how inconvenient this alternative is this may defeat the claim for an easement of necessity. Furthermore, where an easement is implied then the owner of the servient land can fix the route of the easement but it must be reasonably convenient (Pearson v Spencer (1861) 1 BS 571) and once selected cannot be varied (Deacon v South Eastern Railway (1889) 61 LT 377). Furthermore, the case of London Corporation v Riggs[7] emphasises that an easement of necessity is restricted to the needs of the dominant tenement at the date of the grant. In this case Riggs acquired a piece of farmland which land locked and started tea rooms on his land. Eventhough, it was undisputed that Riggs had an easement granted by necessity over his land, but the question which arose was whether or not the clients of the tea rooms had the same right. It was held that, the way of necessity can only be used for the purposes for which the dominant land was being used at the time the necessity arose. Neither contractors building the tea rooms nor future clientele would have the right to use the easement. Therefore, the scope of an easement which is implied by the court by necessity is not a wide one. (ii) Easements of Common Intention Implied easements of common intention were defined in the case ofPwllbach Colliery Co Ltd v Woodman[8], as easements necessary to give effect to the manner in which the land sold or retained was intended to be used and they are very similar to easements implied by necessity. However, the scope and extent of an easement implied by common intention may be wider than an easement being implied by necessity. An easement of necessity is only implied to the extent it is needed to enable the land to be used. However, if it can be shown that there was a common intention of the parties, the extent of the resulting easement may be greater. Therefore, an easement of common intention can therefore arise by implied grant where, the parties have a common intention relating to the use of the dominant or servient land and an easement is necessary to carry out that shared intention. In the case of Wong v Beaumont Property Trust[9], a basement was leased to the plaintiff (Wong) for use as a Chinese restaurant. The lease required the tenant to use the property as a restaurant, but also to control all smells. To do that it was necessary for the Wong to install a ventilation shaft for the smells, which would have to go through the landlords property, but the landlord refused to give such permission. Wong claimed there was an easement entitling him to put up the shaft. It was held that, there was an easement of common intention, because when the original tenant took the premises, a ventilation shaft was necessary in order for the restaurant to function properly and for smells to be eliminated. In this case, Salmon LJ explaine d: à ¢Ã¢â€š ¬Ã…“[I]f a lease is granted which imposes a particular use on the tenant and it is impossible to use these premises legally unless an easement is granted, the law does imply such an easement as of necessity.à ¢Ã¢â€š ¬Ã‚  However it should be noted as already mentioned that the scope for creation of implied easements created by common intention is wider than one of necessity. There is an overlap with easements of necessity here as in both cases necessity is a requirement. Necessity and common intention, based on the presumed intentions of the parties are. However, vulnerable to express wording in the grant demonstrating a contrary intention in Nickerson v Barraclough, the conveyance expressly precluded the grant of any rights, and the estate remained landlocked. (III) The Rule in Wheeldon v Burrows The rule in Wheeldon v Burrows[10], requires evidence of a quasi-easement. A quasi-easement is the use by the owner of a single estate or parts of that estate, in a manner such that an easement would be required if the use of those parts in that manner was to continue if one part was sold. Where a part of that estate is sold, the continued user (assuming the user crosses both estates) will be implied as an easement where the quasi-easement was continuous and apparent (this might include a roadway denoting a right of way, windows denoting rights of light, or a channel denoting the right to take water) and where its continuation as a full easement is reasonably necessary for the enjoyment of the dominant tenement (the part of the estate sold). What is à ¢Ã¢â€š ¬Ã…“reasonably necessaryà ¢Ã¢â€š ¬Ã‚  is not necessarily a high threshold. A right claimed by way of access will not be à ¢Ã¢â€š ¬Ã…“reasonably necessaryà ¢Ã¢â€š ¬Ã‚  if it is simply more convenient (Goldberg v Edwards[11]). However, in Borman v Griffith[12], where the estate benefited from an express right of access to the rear of the property, the courts held that a right of access to the front was reasonably necessary as it was the only way to get to the front door of the premises. The rule in Wheeldon, too, is vulnerable to evidence of a contrary intention. In Squarey v Harris-Smith [13], a standard term in the contract for sale excluded implied rights. The Court of Appeal, declined, on that basis, to find an implied right. (IV) S 62 LAW OF PROPERTY ACT 1925 Finally, s62 Law of Property Act 1925 will imply easements into the transfer of an estate where there is already diversity of occupation between the dominant and servient tenements (for instance on the purchase of a reversion by the tenant). It is long settled law that the operation of s62 can be expressly excluded in a transfer or conveyance. Section 62(1)provides that a conveyance of land shall be deemed to include and shall operate to convey, with the land, all ways, watercourses, liberties, privileges, easements, rights and advantages whatsoever and which (i) appertain or are reput ed to appertain to the land or any part of it; or (ii) are, at the time of the conveyance, occupied or enjoyed with the land or any part of it. Furthermore, s62(4) provides that à ¢Ã¢â€š ¬Ã…“This section applies only if and as far as a contrary intention is not expressed in the conveyance, and has effect subject to the terms of the conveyance and to the provisions therein contained.à ¢Ã¢â€š ¬Ã‚  The effect ofsection 62is that on a conveyance of part, quasi-easements exercised by the owner over its retained land, are granted as easements to the person acquiring that part of the land being conveyed. Case law indicates that mere permissions may be upgraded into easements. For example, where a licensee of land has used a right of way over other land belonging to the licensor with their permission, then that permission will be elevated into an easement by section 62 if a lease is subsequently granted to the licensee. For instance, in the case of Wright v Macadam[14], the landlord (defendant) gave his weekly tenant permission to use a shed in the garden for the storage of coal. Later, the landlord granted a new tenancy to the tenant of slightly larger premises (not including the garden). A dispute subsequently arose about the tenants continued use of the shed. The court held that, there was a privilege (permission to store the coal) at the time that the lease was renewed and therefore s 62 was used to convert this privilege into a full easement. Therefore, in order for a privilege to be converted into an easement under s 62 it is necessary that the privilege exists at the time of the relevant conveyance (or lease). However, there is no requirement that the privilege be necessary or continuous and apparent. On the other hand, there are limits to the s 62 principle, since the right must still satisfy the characteristics of an easement under Re Ellenborough Park, mentioned above. For instance, s 62 only operates where there is a à ¢Ã¢â€š ¬Ã…“conveyanceà ¢Ã¢â€š ¬Ã‚ , which includes legal leases, but does not oral leases or documents creating equitable leases. Secondly, the grantor must have the power to grant the easement, i.e. he must be a à ¢Ã¢â€š ¬Ã‹Å"Competent Grantorà ¢Ã¢â€š ¬Ã¢â€ž ¢. Section 62 cannot confer a better title on the grantee than the grantor possessed (à ¢Ã¢â€š ¬Ã…“nemo dat quod non habetà ¢Ã¢â€š ¬Ã‚ ). Furthermore, s 62 only applies to convert privileges into easements. It could not be used to convert a quasi easement into an easement because in order for s 62 to apply, prior to the conveyance there must be a diversity of occupation (ie dominant and servient land must be owned by different people. IMPLIED RESERVATION A reservation of an easement happens when the vendor sells part of their land and reserves (or keeps) an easement over the land sold. However, courts are reluctant to imply a reservation because if a vendor wishes to retain a right, he should do so expressly in a conveyance. Implying a right is a derogation from grant. Therefore the only types of implied reserved easement are, by Necessity and Common intention and since courts will not allow an easement to be implied under the rule in Wheeldon v Burrows or s 62 in the case of a reserved easement. IMPLIED RESERVATION BY NECESSITY InUnion Lighterage Co v London Graving Dock Co [15]the claim failed, as there was no implied reservation, since (following the second limb ofWheeldon v Burrows) this would amount to a derogation from grant. This was not one of the exceptions to this rule (there was no necessity).In the case Stirling LJ, gave a description of implied reservation of an easement by necessity, stating that à ¢Ã¢â€š ¬Ã…“an easement of necessityà ¢Ã¢â€š ¬Ã‚ ¦means an easement without which the property retained cannot be used at all, and not one merely necessary to the reasonable enjoyment of that propertyà ¢Ã¢â€š ¬Ã‚ . Therefore, According to Stirling LJs strict approach, the only situation where th is kind of easement will be implied is where the land is land locked. placed on the well-established principle that an easement of necessity can only be implied where without it the land could not be used at all, not whereit is merely necessary to the reasonable enjoyment of the property Adealon International Proprietary Limited v Merton London Borough Council[16] The Court of Appeal has upheld the High Courts decision to reject a landowners claim for the implied reservation of an easement of necessity. The landowner sold off land that adjoined its property on three sides, speculating that it would obtain planning permission for access to the retained land from the public highway which ran along the fourth boundary of the property. When the planning application was refused, the landowner claimed an easement of necessity over the land that had been sold off. The claim was rejected by both courts, on the basis that any rights of way required by the landowner could have been express ly reserved in the transfer when the adjoining land was sold off. The test of necessity can be a difficult one to satisfy. For example, access by water can be enough to prevent a right of way over land arising by necessity (Manjang v Drammeh (1991) 61 PCR 194).However, in Sweet v Sommer[17] it was held that an easement of necessity was implied even though the landowner, at the time of the implied grant, could have obtained another means of access by demolishing a building on its own land. IMPLIED RESERVATION BY COMMON INTENTION An easement by reservation may also be implied by common intention and the same case law as for easement by grant will be applied, however they depend upon the presumed agreement of the parties. So it is possible, the rules relating to implied grant may be excluded in a contract for sale or lease. Extinguishment of easements, can be done expressly or impliedly. In the former case, the dominant owner must execute a deed giving up the easement and in t he latter case, an implied release it can occur by (i) abandonment or (ii) a radical Change in nature of dominant land. For an easement to be deemed à ¢Ã¢â€š ¬Ã‹Å"abandonedà ¢Ã¢â€š ¬Ã¢â€ž ¢, as illustrated in the case of Benn v Hardinge[18], the servient owner can show (i) at least 21 years non-use and (ii) an intention on the part of the dominant owner to abandon the easement. Whereas, a radical change would be, where a property enjoys an easement of support, but the property enjoying this easement is demolished, extinguishing the easement. Although an easement may bereservedby showing common intention, there is a heavier burden of proof for an implied reservation than for an implied grant. InDonovan Anor v Rana Anor[19] , the Court of Appeal held that a transferee was entitled to an easement implied by common intention over the transferors retained land to connect to mains services in the public highway in spite of the transfer containing wording purporting to exclude th e grant of additional easements This is because they are all based on the principle of non-derogation from grant whereby a person, having given something, cannot then take away the means of enjoying it. However, the principle of non-derogation from grant is essentially passive in character and a grantor does not have to take additional positive steps to perfect or improve the grant. For example, inWilliam Old International Limited v Arya[20] although the developer had an implied easement to lay service media across neighboring land, that did not oblige the owners of the neighboring land to enter into a deed of grant with a statutory undertaker as this was outside the presumed contemplation of the parties CONCLUSION The implication of easements is no substitute for express easements. Implied easements are conditional, and are vulnerable to a clear contrary intention. Moreover, an implied easement in registered land, if not on the register, is reliant on over-riding status (S ch 3 Land Registration Act 2002), and the right may, therefore, be lost if a third party purchases the servient estate. Reform Note that the Law Commission published a report à ¢Ã¢â€š ¬Ã…“Making Land Work: Easements, Covenants and Profits a Prendreà ¢Ã¢â€š ¬Ã‚  2011 Law Comm No 237, which has recommended widespread changes to the law of easements. Most particularly, the Law Commission recommends: Simplifying the law of creation of easements; Streamlining land registration procedures Empowering the Lands Chamber of the Upper Tribunal to modify or discharge land obligations. [1] [1956] Ch. 131 [2] [1863]2 H C 121 [3] [1863]143 ER 332 [4] (1879) 12 Ch 31 [5] Union Lighterage Co v London Graving Dock Co (1902), Nickerson v Barraclough (1981), Wong v Beaumont (1965) [6] (1990) 61 P CR 194 [7] [1880] 13 Ch D 798 [8] [1915] AC 634 [9] [1965] 1 QB 173 [10] (1879) 12 Ch D 31 [11] [1950] Ch.247 [12] [1930] 1 Ch 493 [13] [1981] 42 P CR 116. [14] [1949] KB 744 [15] [1902] 2 Ch 557 [16] [2007] EWCA Civ 362. [17] [2004] 2 P CR DG24 [18] (1993) 66 PCR 246 [19] [2014] EWCA Civ 99 [20] [2009] EWHC 599