Hi,
I want to know what is a "Leave and License Agreement" and how it differs from a lease agreement?????
Thanx
3 Replies
ars
(CS)
(445 Points)
Replied 21 May 2010
The cardinal distinction between a lease and a licence is that in a lease there is a transfer of interest in the premises, whereas in the case of a licence there is no transfer of interest, although the licensee acquires a right to occupy the premises. When premises are given out on lease or tenancy basis the legal possession of the premises in these cases is also deemed to be transferred to the lessee and tenant respectively.
In a leave and licence agreement, the owner is deemed to be in legal or judicial possession of the premises and the licensee is in constructive possession of the premises.
RITU BAJAJ
(COMPANY SECRETARY)
(158 Points)
Replied 22 May 2010
Plz tell me what are the benefits of opting for Leave & License Agreement instead of Lease Agreement?
Sharad Saini
(Student)
(286 Points)
Replied 22 May 2010
hi
Please tell me who holds the risk and reward associated with the ownership in a Leave and license agreement. and implication of AS 19 about this agreement?
Suppose Mr A has incurred some expenses on flooring in premises acquired under this agreement than should it be capitalised??
thanx
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