One of the most obvious points of distinctions between a leave and license agreement and a lease agreement is that they are defined under two separate laws. The next and most important point of distinction is that in a lease there is a transfer of interest in the property while in the case of a license there is no such transfer although the licensee occupies only a personal right to occupy the property.
Listed below are a few more differences between the two types of agreements.
a) A lease gives the tenant a right to exclusive possession while a license confers no such right on the licensee.
b) A lease is assignable but a license is generally non-transferable.
c) A license is revocable by the licensor under section 60 of the Easement Act unless it falls within two exceptions mentioned in that section. This means that a leave and license agreement cannot be revoked by the licensor if it is coupled with a transfer of property and such transfer is in force. The agreement also cannot be revoked by the licensor if the licensee, acting upon the license, has executed a work of a permanent character and incurred expenses in the execution. The lease is not revocable by the lessor.
d)A lease is not determined by the grantor making an assignment or its subject-matter, but a license is determined in such a case.
e) A lessee can bring an action for trespass but a licensee cannot sue in his own name;
f) A lease creates a heritable right under the Transfer of Property Act and also under the Bombay Rent Act. A license will come to an end on the death of a licensee. On the death of a licensee, his heirs will not inherit a right as a licensee to use the premises.
g) A lessee can take up the burden to contribute to structural alterations, repairs and improvements, insurance and pay taxes and assessments while a licensee cannot take up the burden to contribute for the same.
