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OUR BLOG

Lease Vs Licence Agreement

By pierre.shaun@gmail.com | In Uncategorized | on April 10, 2021

Tenants under a rental agreement: As agreed, a rental agreement allows the tenant to “exclusively own” the premises, including the right to designate an unauthorized visitor. This means that the tenant may have an action at fault against the landlord if he enters the property without the tenant`s consent and without authorization, according to the terms of the tenancy agreement. Rent is preferable to licensing in the following circumstances: in these circumstances, the court considers that the content takes precedence over terminology, the courts that examine the actual nature of the agreement, not their language, to determine the actual intentions of the parties. Licensed: A license is suitable for sharing (so that it is adapted to a number of agreements concluded by our ecclesiastical clients). On the other hand, the licenses allow the party who accepts the payment to have much more control over the use of its assets. With respect to the example above, licences cannot be transferred to third parties because the licensing company controls certain aspects of your behaviour in the field; Allowing another party to use the property rather than itself would be a violation of that agreement. This is why licensing agreements are mainly used for short-term contracts with storage, office and small areas. Subject to the terms of the contract, a lease agreement is not revocable by the owner. If you have a one-year lease, the landlord cannot revoke your right to the land after six months without breaking the contract. However, a license may be revoked. In this case, the next door neighbour can tell you at any time that you can no longer climb his tree.

On the other hand, a lease (or a lease, these conditions are interchangeable) is much more than a contractual authorization – it is land. A lease can therefore be purchased and sold; it survives changes in ownership of higher interests in the country; and, if it is a commercial rental and meets the requirements of Part II of the Landlords and Tenants Act 1954 (The Tenants Act 1954), it provides security to the tenant. This means that the tenant`s activity cannot be interrupted even after the tenancy period has expired, unless the landlord can (if necessary in court) determine one or more of the limited legal grounds for withdrawal.

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