Contract act
VIJAY K. TEOTIA
(Querist) 12 September 2011
This query is : Resolved
what is the difference between a lease deed and leave and licence agreement. In a corporate transaction which document should be preferred. Can such document be executed for a longer period say 15 years.
ajay sethi
(Expert) 12 September 2011
a lease is transfer of right to enjoy property for a particular period or in perpetuity .
lecence does not allow any interst in property but merely right to use and enjoy for limited period . stamp duty is more for lease deed than leave and licence
leave and licence agreement is generally executed for short duration . whereas lease deed is executed for a longer period of time .
it depends upon whether you want to make commitment for longer period of time or not .
Shastri J.K.
(Expert) 12 September 2011
I agree with mr.ajay sethi
Raj Kumar Makkad
(Expert) 12 September 2011
A Lease, defined under Section 105 of The Transfer of Property Act, 1882, is a transfer of the right to enjoy the concerned property for a pre-defined time period or in perpetuity. The lessor (owner of the property) gives the lessee (the one leasing the property) such consideration periodically, usually at the beginning or end of a lease agreement.
License is defined in Section 52 of the Indian Easements Act,1882. License does not allow any interest in the premises on the licensee's part. It merely gives the licensee the right to use and occupy the premises for a limited duration.
A lease deed needs to be stamped and registered. The amount payable towards the lease deed's stamp duty is more than that payable towards the Leave and License's. For a period exceeding three years, the stamp duty is same for both agreements.
