1. What is difference between Leave & License agreement and Business Conducting agreement?
anand das (service) 12 October 2011
1. What is difference between Leave & License agreement and Business Conducting agreement?
Nandgopal (Partner) 13 October 2011
leave and licence allows the licencee to use the premisis for a fixed period there is no financial liability , while the other is in the nature of an agent, which means that if the business were to incur any liability the principal would also be liabile.
anand das (service) 14 October 2011
Thank you Nandgopalji. Pls consider following situation.
‘A’ owns a certain piece of land and there is a structure (a 3 storied building) built by ‘A’ on this land. Building is newly built and is empty. ‘A’ is approached by a multinational company ‘B’ to open it’s retail outlet in this premises (land with building).
Can ‘A’ give the premises by entering into a ‘Business Conducting Agreement” without getting into ‘Lease ‘ or ‘Leave and License agreement’ and also without ‘A’ himself participating in the business? Company ‘B’ will give money to use A’s premises as per ‘Business Conducting Agreement”.