Meaning and Legal Concept
A Licence is a legal permission granted by the owner of property (licensor) to another person (licensee) to do something on the property which would otherwise be unlawful. Unlike a lease or mortgage, a licence does not transfer any interest or possession in the property; it merely allows the licensee to perform certain acts. The concept of licence is recognized under Section 52 of the Transfer of Property Act, 1882, which distinguishes it from leases and easements. A licence is generally revocable at the will of the licensor, unless it is coupled with an interest or expressly made irrevocable. Licences are commonly granted for entry, use, or temporary occupation and are widely used in hospitality, events, and commercial arrangements.
Essential Features of a Licence
For a valid licence, the following conditions must be satisfied: First, the licensor must have the authority or ownership to grant permission. Second, the licence does not create any transferable interest in the property. Third, it is personal to the licensee, and cannot generally be assigned unless expressly permitted. Fourth, it is usually revocable at the licensor’s discretion, unless coupled with an interest. Fifth, it must be lawful and not infringe public policy. These features make a licence distinct from leases or easements, providing temporary and limited rights to the licensee without affecting the licensor’s ownership or possession.
Legal Nature and Scope
Legally, a licence is a contractual right, often supported by consideration, but it does not create a proprietary interest. Courts treat licences as personal rights and enforceable through contract remedies but not through property remedies like eviction. Licences can be express or implied, oral or written, and may arise under agreements or statutes. Revocation by the licensor is generally permissible, but exceptions exist, such as licences coupled with interest, where revocation would defeat a right that has already accrued. The doctrine protects the licensor’s ownership while providing limited benefits to the licensee. Thus, licences play an important role in property law, hospitality, commercial, and temporary access arrangements.
Real-Time Example
A practical example of a licence is when A allows B to use a hall for a wedding reception for a single day. B has permission to enter and use the hall, but does not acquire ownership or possessory rights. A can revoke the licence if B misuses the hall, unless a contract makes it irrevocable for that event. This example illustrates how a licence grants temporary, personal, and revocable rights without transferring interest in property.
Mnemonic to Remember Licence
A simple mnemonic to remember the concept of licence is “P-R-L-A”:
P – Permission granted
R – Revocable at will
L – Limited rights
A – Authorization without ownership
This mnemonic helps students easily recall the essential elements of a licence and distinguish it from leases and easements during examinations.
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