i. Lease and Assignment
The distinction between a lease
and an assignment is in the nature of the interest granted and the
terminology used. In an assignment, the vendor/assignor conveys
his entire interest in the property to the purchaser/assignee. But in a lease,
the landlord/lessor conveys to the tenant/lessee only a term of
years; the landlord/lessor retaining the reversionary interest in the
property.
ii.
Lease and Sub-lease
A
lease is a direct relationship between the landlord/lessor and tenant/lessee;
but a ‘sub-lease’ means that the tenant/lessee sub-lets the property to
a sub-tenant/lessee. In such situations, the first lease is called the
‘head-lease’ and the second lease is called ‘sub-lease’ or ‘under-lease’. In a
sub-lease, it is the tenant/lessee and not the landlord that sub-lets
the demised property.
iii.
Lease and Licence
A licence is a relationship by which
the licencee is granted a right to use the premises without becoming entitled
to exclusive possession; it mere gives the licencee a personal privilege with
no interest in the property. The test of whether the occupier is a tenant or licencee is not the terminology used but the
intention and relationship between the parties.
Again, a licence arises where a
landowner permits another to enter into or remain on his property in such
circumstances that if the permission were absent the occupier would be a
trespasser or squatter. The grantor of the permission is the licensor;
while the grantee is the licensee. A licence does not bind the
licensor’s successors as successors can be bound only by recognized proprietary
rights, legal or equitable.
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