this presentation.. gives a distinction between the lease and license agreements.

1. LEASE
Difference between Lease and
License

2. Lease
Section 105 of Transfer of property act
defines lease – A lease of immovable
property is a transfer of right to enjoy such
property, made for a certain time, express
or implied, or in perpetuity, in
consideration for a price paid or promised,
or of money, to the transferor by the
transferee, who accepts the transfer of
such terms.

3. License
• Section 52 of The Easement Act - Where
one person grants to another, or to definite
number of other persons, a right to do or
continue to do, in or upon the immovable
property of grantor, something which
would, in the absence of such right, be
unlawful, and such right does not amount
to an easement or an interest in the
property the right is called a license.

4. Associations Hotels of India Ltd vs R N Kapoor,
1959
The well established propositions are:
(1) To ascertain whether a document creates a license or
lease, the substance of the document must be preferred
to the former.
(2)The real test is - the intention of the parties- whether
they intend to create a license or lease
(3) If the document creates an interest in the property , it is
a lease; but if it only permits another to make use of the
property, of which legal possession continues with the
owner, it is a license.
(4) If under the document a party gets exclusive possession
of the property prima facie he is considered be a tenant,
but circumstances may be established which negative
the intention to create a lease.

5. Difference between lease and
license
• Lease • License
(1) Section 105 of the Transfer of Property (1)Section 52 of the Easement Act defines
Act defines a lease of immovable property; license;
(2) It is transferable ; (2) It is non transferable;
(3) It is not revocable; (3) It is revocable;
(4) A lease is unaffected (4) A license is determined
(5) A lessee can himself sue for (5) A licensee cannot be transferred.
trespassing (6)The death of grantor terminates a
(6)The death of the grantee passes on the license
interest to the heirs in the case of a
lease

6. • A license does not create an interest in the
property to which it relates while a lease
does create an interest.
• The transfer of a right to enjoy the
property in case of a lease. A particular
transaction creates a lease or a license is
always a question of intention of the
parties that is to be inferred by the
circumstances of each case.

7. • A license does not create an interest in the
property to which it relates while a lease
does create an interest.
• The transfer of a right to enjoy the
property in case of a lease. A particular
transaction creates a lease or a license is
always a question of intention of the
parties that is to be inferred by the
circumstances of each case.