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The essential difference between a lease agreement and a licence is that a lease agreement gives the tenant an interest in laudable premises that manifest themselves in the right to exclusive ownership (see Radich/Smith [1959] HCA 45. Home / Published Articles / Licensed Tenants, Licensees, Owner-Donor, New York Eviction Process, Lease-Lease, Good Faith Licensing Contract / Use of a Licensing Agreement In place of a leasing licensee: The repair and maintenance obligations of the licensee and the amount of rent payable depend on the licensing conditions. Given the reality of the facts on the ground and the fact that the parties did not have the power to negotiate on an equal footing (the college had never used legal advice), the Tribunal found it unrealistic to assume that the parties had ever contemplated that the business and occupation of the college would be interrupted by the owner (and this could have been contrary to the commercial interest of the owner). The court therefore found that the college was exclusively in possession of the premises, so that, regardless of the description of the documents, its occupation was in fact subject to a lease agreement. His Honour therefore recognized that language has the potential to mislead – certain terms may be accepted, sometimes unconsciously, sometimes with the deliberate intention of concealing the true nature of the parties` agreement and circumventing the legal implications that flow from it. But in reality, the college had set up the premises; it was clear that the purpose of the agreement was to allow the college to carry out its functions as an educational institution; and the landowner had never exercised his right of entry. The documents also contained a service liability on the part of the college and a “cessation in the event of an infringement” provision, which amounted to an expiry clause in a tenancy agreement. In the case of Radich v Smith [1959] HCA 45 (“Radich case”), a small entrepreneur, Maria Radich, entered into an agreement to operate her gate milk bar in the Mossman area of Sydney. Shakespeare may have been prophetic – in a modern legal context, the name of a document or agreement may not reflect its true nature. If you have permission to use another person`s country for specific purposes, you may have entered into a written agreement with the landowner, which defines the terms of your business. The contract can be referred to as a licensing agreement or license indicating that you have the personal right to enter and use the premises.

Dan