Licensor & Licensee have agreed for a 9 year (5+4) L&L arrangement. The first tenure of 5 years is duly registered. The second tenure of 4 years is an Extension Agreement prepared on a Rs.500/- stamp paper, but not registered. Both agreements are signed at the beginning of the 9 year tenure; the extension agreement for 4 years would be the basis to register a fresh L&L agreement at the end of the first 5 year tenure. The query is, at the end of the first 5 year tenure, if either of the parties has a rethink and backs out of registering a fresh L&L for a further 4 years, what can be the implications on the defaulting party, in view of the Extension Agreement in place.
Regards, Ashok Pachisia
