A Specimen of Leave and License Agreement
THIS AGREEMENT is made at ______ this ______ day of ________, 20,
Between Mr. A, hereinafter referred to as 'the Licensor' of the One Part, and Mr. B of ______________, hereinafter referred to as the 'Licensee' of the Other Part, as follows:
WHEREAS the Licensor is the owner of a piece of land at ____________________ bearing Survey No. ______ with a building consisting of ______ floor(s), having a built-up area of about ______ square feet.
AND WHEREAS the Licensee has approached the Licensor with a request to allow the Licensee to temporarily occupy and use a portion of the ______ floor of the said building, admeasuring about ______ square feet, for carrying on his ______ business, on a leave and license basis until the Licensee gets other more suitable accommodation.
AND WHEREAS the Licensor has agreed to grant leave and license to the Licensee to occupy and use the said ground floor portion of the said building, which portion is shown on the plan hereto annexed by a red boundary line, on the following terms and conditions agreed to between the parties hereto.
NOW IT IS AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:
The Licensor hereby grants leave and license to the Licensee to occupy and use the said portion of the ground floor/______ floor of the said building of the Licensor (hereinafter referred to as the Licensed Premises) for a period of eleven months from ______. The Licensee agrees to vacate the said premises even earlier if the Licensee secures any other accommodation in the locality where the said premises are situated.
The Licensee shall pay to the Licensor a sum of Rs. ______ per month (calculated at the rate of Rs. ______ per square foot) as License fee or compensation, to be paid in advance for each month on or before the ______ day of each month.
All the Municipal taxes and other taxes and levies in respect of the Licensed Premises will be paid by the Licensor alone.
The electric charges and water charges for electricity and water consumption in the said Licensed Premises will be paid by the Licensee to the authorities concerned, and the Licensor will not be responsible for the same. For the sake of convenience, a separate electric and water meter, if possible, will be provided in the said premises.
The Licensee will be allowed to use the open space near the entrance to the Licensed Premises, shown on the said plan by green wash, for parking cars during the working hours of the Licensee and not at any other time; and no car or other vehicle will be parked on any other part of the said plot.
The Licensed Premises will be used only for carrying on business and for no other purpose.
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About this template
What is this template?
This document is a commercial license for the use of space and is not a lease or tenancy agreement. It contains specific terms for the payment of license fees in Rupees, the installation of additional electrical fittings at the licensee's cost, and a restriction against exclusive occupation.
When should you use it?
Use this document when providing temporary access to business premises for a period under one year to avoid statutory tenancy protections. Use a Commercial Lease Agreement instead if the occupant requires exclusive possession or a longer fixed term.
What's inside
| Clause | Name | What it does |
|---|---|---|
| 1 | Grant of License | Grants the Licensee use of the Licensed Premises for a period of eleven months starting from a specified date. |
| 2 | License Fee | Obliges the Licensee to pay a monthly fee in Rs. calculated per square foot in advance by a specific day. |
| 4 | Utility Charges | Assigns responsibility for electric and water charges to the Licensee, including the provision of separate meters if possible. |
| 5 | Parking Rights | Permits the Licensee to use a specific open space marked in green for parking cars only during working hours. |
| 8 | Nature of Occupation | Explicitly states that the agreement does not grant a lease and the Licensee has no right to transfer the benefit. |
| 13 | Termination for Breach | Entitles the Licensor to terminate the agreement with fifteen days' prior notice if the Licensee commits any breach. |
Who it's for
- a property owner in India granting temporary business use of a building floor without creating a tenancy
- a business owner requiring short-term commercial premises while seeking more permanent accommodation
- parties seeking a fixed eleven-month occupancy period with monthly license fee payments in Rupees
How long it runs and how it's signed
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