CA 8 March 1993. The plaintiff, F, was the owner of a building and entered into a reciprocal housing agreement with the local authority by which they agreed to rehouse the basement-flat tenant and F agreed, that on completion of specified works, the council could nominate a new tenant for the flat on a protected tenancy. The defendant, P, was nominated. In March 1986, without F`s authority, F`s surveyor gave P the key to the flat knowing that she would move in and commence occupation. F`s solicitors sent two letters to P one an open letter, stating that occupation was unlawful and requiring possession and one marked `without prejudice` offering a shorthold tenancy upon which grant could be back dated. P agreed to this in a telephone conversation however she did not sign any agreement nor pay any rent. In the possession hearing it was held that the telephone conversation and without prejudice letter were admissable and dismissed F`s claim. F appealed and this was allowed on the ground