As a professional, I have come across various legal documents that are necessary for different purposes. One such legal document is a Leave and License Agreement. The terms ‘Leave’ and ‘License’ are often used interchangeably, which creates confusion among people. Therefore, in this article, we will discuss the difference between a Leave and License Agreement.
Before we dive into the differences, let’s first understand what Leave and License Agreement is.
A leave and license agreement is a legal document that outlines the terms and conditions of using a property for a specific period. The owner of the property is referred to as the Licensor, and the person who is granted permission to use the property is known as the Licensee. The Licensee is granted a temporary right to use the property, and they are not entitled to any ownership rights.
Now that we know what a Leave and License Agreement is, let’s move on to the differences between Leave and License Agreement.
The most crucial difference between the Leave and License Agreement is that in a Leave Agreement, the occupier is granted a lease of the property. Hence, the tenant has more rights and control over the property, and they can sub-lease the property, but in the case of a License Agreement, the occupier is given limited permission to use the property.
A Leave Agreement is entered into when the property is leased for residential or commercial purposes, and the occupier is granted the right to possess the property. In contrast, a License Agreement is entered when the owner wants to give someone the right to use the property for a specific purpose.
The duration of a Leave Agreement is more extended, and it can be for months or years, whereas a License Agreement is for a shorter duration, and it can be for days, weeks, or months.
A Leave Agreement can only be terminated by either party by mutual consent or when the lease period expires. In contrast, a License Agreement can be terminated by either party without giving any notice or reason.
In a Leave Agreement, rent is payable, and the occupier has to pay it on a monthly or yearly basis. In contrast, in a License Agreement, the occupier has to pay a predetermined fee, which is usually a lump sum.
In conclusion, a Leave and License Agreement differs significantly in terms of ownership, purpose, duration, termination, and rent. Therefore, it is essential to carefully understand the differences before signing any legal document.