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anand das (service)     12 October 2011

Leave license vs busines conducting

1. What is difference between Leave & License agreement and Business Conducting agreement?



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 2 Replies

Nandgopal (Partner)     13 October 2011

leave and licence allows the licencee to use the premisis for a fixed period there is no financial liability , while the other is in the nature of an agent, which means that if the business  were to incur any liability  the principal would also be liabile.

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anand das (service)     14 October 2011

Thank you Nandgopalji. Pls consider following situation.

‘A’ owns a certain piece of land and there is a structure (a 3 storied building) built by ‘A’ on this land. Building is newly built and is empty.  ‘A’ is approached by a multinational company ‘B’ to open it’s retail outlet in this premises (land with building).  

Can ‘A’ give the premises by entering into a ‘Business Conducting Agreement”  without getting into ‘Lease ‘ or  ‘Leave and License agreement’ and also without ‘A’ himself participating in the business? Company ‘B’ will give money to use A’s premises as per ‘Business Conducting Agreement”.


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