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lease and licence

public servant

What   is   the  difference   between  lease and  licence?

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Advocate.

 


Dear Sir,


Following are the basic differences between Licence and Lease.


A] License is governed by the Easements Act, 1882, while the lease is governed by the Transfer of Property Act, 1882.


B] If an interest is created in a property it is lease, but where only a permission for user is granted, it is license.


C] Generally if an exclusive possession is granted it is lease else license.


D] It will basically have to be construed from the document creating it.


E] normally a lease is for a longer period and license for a pretty short period


In practice, the term licence usually refers to a relatively flexible, short term agreement. Licences should be for less than six months, non-exclusive, and be terminable at short notice (say one month) by either you or the 'licensor', to avoid being treated as a lease. Licence agreements usually have a low initial cost, perhaps a deposit equivalent to one month's rent. Typical licensed premises include small office units or workshops within a larger building, and often include various support services (such as reception and security).



Legally, however, what matters is not whether an agreement is referred to as a licence or as a lease, but what the agreement actually says. Although many licences are relatively straightforward, you still need to satisfy yourself that you understand your rights and obligations before entering into any agreement

 
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public servant

Thank  You   very much  Sir.

 
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Advocate

licence  is permission for restricted use


but lease is total uniterruped permission to use

 
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