EXAMINING THE SIMILARITIES AND DIFFERENCES BETWEEN A LICENCE AND A LEASE AND THE LEGAL SIGNIFICANCE OF THE DISTINCTION

Abstract

Licence and lease sound like the same thing, and both terms are often been
used interchangeably although, they are two separate legal concepts that offer
different rights and duties with little similarity. A lease is an agreement
between a landlord and a tenant that gives the tenant an exclusive interest in a
property. A license is permission from the owner to a licensee to do
something on the owner's property. As with all things law-related, the
distinction is never so simple. A good understanding of these two concepts is
important in the determination of the rights and rules applicable to each of
them. This paper therefore, examined the legal distinctions and similarities
between leases and licenses in property law, emphasizing the significance of
exclusive possession and the intention of the parties involved through a
doctrinal research approach, particularly, by analyzing key case laws, which
enabled the actualization of the distinctions. It was recommended that lawyers
who draft tenancy agreements and licence agreements should read and explain
the contents of the lease and licence agreements they prepared to their clients
to enable them know the extent of their rights and liabilities. This will reduce
litigations in court.