Rent agreement

Guest (Querist) 21 September 2012 This query is : Resolved
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what is the nature of the 11 month rent agreement? is it a lease agreement or a license agreement?

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ajay sethi (Expert) 21 September 2012
what are terms and conditions of agreement ?it would be a leave and license agreement wherein license would only be granted right to use said premises for 11 months . no interest in property is created in favour of licensee

ajay sethi (Expert) 21 September 2012
A lease is defined in section 105 of the Transfer of Property Act, which provides that "A lease of immovable property is a transfer of a right to enjoy such property, made for a certain time expressed or implied or in perpetuity in consideration of a price paid or promised, or of money, a share of crops, service or any other things of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms."

The cardinal distinction between a lease and a licence is that in a lease there is a transfer of interest in the premises, whereas in the case of a licence there is no transfer of interest, although the licensee acquires a right to occupy the premises.