What Is The Difference Between License Agreement And Tenancy Agreement

Windeyer J.A. found that the difference “between a lease agreement and a licence” was ultimately “a matter of intent.” Dismissed: the taker does not benefit from such protection. In theory, a licence can be terminated according to the owner/licensed will, even if contractual damage may be caused. It should also be noted that a licence does not confer interest on the land, as it is not subject to stamp duty. However, it would be unnecessary to label a document as a license for the sole purpose of avoiding stamp duty. Whether a document creates a lease or licence does not depend on the name of the document or any other label indicated by the parties, but on the actual nature of the rights and obligations, as the agreement demonstrates. An important factor in distinguishing between a rental agreement and a license is whether the user has the property exclusively. Subject to different facts from one case to another, the law generally accepts that the granting of exclusive employment (the user may occupy the property exclusively and privately) creates a lease agreement for a period of time for periodic payments. The essential difference between a lease agreement and a licence is that a lease agreement gives the tenant an interest in laudable premises that manifest themselves in the right to exclusive ownership (see Radich/Smith [1959] HCA 45. Licensed: The license can normally enter the premises at any time and for any use (whether it is repairs, premises or any other means of seeing). If the licensing agreement limits the licensee`s eligibility, the licence may be a lease agreement. If a lessor prefers to grant a licence, it is best to ensure that the licensing document is carefully developed to ensure that the court does not consider the agreement to be a lease agreement, with unintended consequences for the lessor. To emphasize the difference between a rental contract and a license, we provided a selection of a tenant`s rights and obligations under a rental contract as opposed to those of a pure licensee who does not have the same interest in the land: other agreements are periodic, i.e.

they roll week after week or month after month. To answer these questions, the essential characteristics of a lease agreement must be understood and what distinguishes a lease from a license.