What tenancy is characterized by one party occupying with the potential for eviction by the other party?

The correct choice is tenancy at will. This type of tenancy involves one party (the tenant) occupying a property with the landlord's consent, but there is no formal lease agreement specifying the duration of the tenancy. This arrangement allows for greater flexibility; however, it also means that either party can terminate the tenancy at any time, often with little notice. This creates a scenario where the tenant can be evicted by the landlord at will, as there aren’t long-term commitments or restrictions in place.

In contrast, tenancy at sufferance occurs when a tenant remains in possession of the property after the lease has expired, and the landlord has not given permission for the tenant to continue occupying the premises. While the tenant may be living there, they do not have the legal standing that comes from a tenancy at will, as the tenant does not have the landlord's consent to stay beyond the lease term.

Joint tenancy and tenancy in common are forms of ownership rather than types of tenancy. They relate to how multiple individuals hold title to a property, and the implications for that ownership regarding rights of survivorship and distribution after death. Since these ownership forms do not pertain to occupancy rights or eviction scenarios, they do not apply to the question at hand.