Commercial Rental Lease & tenancy

Commercial Rental Lease & Licence Agreements

Rental agreements are also referred to as tenancy or lease agreements. In rental agreements, there is a transfer of interest from a lessor to a lessee. If the premises are given on tenancy, there is an element of irrevocably (or immovability) by the owner except on the grounds for eviction mentioned under the Rent Act.

Classification of Lease, Tenancy & Rental Agreements

The question whether a certain agreement to occupy an immovable property is an agreement to lease or an agreement of leave and license has been a subject of many court judgments. Ever since the introduction of the Rent Acts and security of possession given to the tenants by law, agreements of license have come to be viewed with suspicion that they are a disguise taken by the landlords. According to the courts, the classification of an agreement and the real nature of the transaction has to be determined through construction of the document as a whole and not based on particular words used in the document.