Rita owns a property which comprises a ground floor shop and a first floor, one-bedroom, flat.

Rita owns a property which comprises a ground floor shop and a first floor, one-bedroom, flat. The flat and shop have separate entrances. In 2007, Rita agrees to grant Audrey a lease of the shop for three years at an annual rent of $8,000, the rent to be paid in monthly instalments. The agreement also provides that either party may terminate the lease by giving six months notice. The lease has never been executed; but Rita has moved in and started paying rent each month. Last year Rita agrees that her friend’s son, David, a trainee hairdresser, and his girlfriend Tina, can live in the first-floor flat. Rita draws up a "licence’ agreement and insists that David and Tina sign separate copies. The agreements provide that they will each pay $300 per week as an ‘occupation fee"; and that they will be able to live in the flat for three years ‘or until David completes his training’. The agreement also states that David and Tina must vacate the flat so that it can be cleaned every Tuesday between 12 noon and 2pm. David and Tina have always preferred to do all their own cleaning. Advise Rita about: (a) how much notice she needs to give Audrey to leave the shop; (b) the legal nature of the agreement she has with David and Tina. 2009A