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Licence and Leave Agreement


A Leave and License is an agreement temporarily made by a licensor and a licensee which allows the licensee to use and occupy the licensor’s immovable property full or part of the same, for the purpose of carrying on business activity or residential use and pay a fixed amount of rent or as per their mutual understanding decided and accepted.
Here, there is another confusion assumed by people that Leave & License agreement and the Rental or Lease agreement are to be the same. But that’s not the case both are different from each other. In leave and license the term License means limited rights/set of rights given by one party to another to perform certain actions in or upon the immovable property, such rights are personal and non-transferable and in the Rental or lease agreement the rights are being transferred for the enjoyment of the immovable property for a certain period of time by the transferor (lessor) to transferee (lessee) for a consideration (rent).
All these agreements are governed by the Indian Easement Act, 1882. In the case of leave and lease, the owner leaves the place with various facilities and allows the licensee to use it for a specific period of time. Once the leave is over and the owner returns, the entire set of facilities, which are given for use shall be left behind when the licensee leaves the premises.