Lease And License: Navigating The Legal Landscape

Introduction

A 'lease' grants an interest in immovable property. In contrast, a 'license' gives a right to do or continue to do, in or upon immovable property, something which would otherwise be unlawful. Understanding the import of the foregoing sentence is essential to understand to decide between a lease or a license in a given scenario. While the definitions of 'lease' and 'license' have stayed the same since 1882, the issues surrounding 'lease' and 'license' continue to be debated, and sometimes the distinction appears blurred in use cases. Over the years, decided cases have discussed various aspects of a 'lease' and 'license'. This write-up dissects the two concepts – 'lease' and 'license' to provide a better insight with respect to the use case.