Lease is defined under Section 105 of the Transfer of Property Act. It is a transfer of right to enjoyment of immovable property by one person called lessor to another person called the lessee, made for a certain term, express or implied, or in perpetuity in consideration of a price paid or promised, or of money, share of crops, service or any other thing of value, to be rendered periodically or on specified occassions, to the transferor by the transferee, who accepts the transfer on such terms.
License is defined under Section 52 of the Indian Easement Act. Where one person grants to another or to a definite number of persons, a right to do or continue to do in or upon the the immovable property of the granter, something which would in the absence of such right be unlawful.
The main differences/distinctions between the two are as follows:
- There is transfer of interest in the property in a lease; but not in a license.
- Tenant becomes the possessor exclusively in a lease. But a license do not generally confer such a right on licesee.
- Transferability is a feature of lease. License is not transferable.
- A lease is not revocable. A license is revocable.
- Trespassers can be sued by the lessee in his own name; but a licesee cannot.
- Death of either party does not affect a lease. A license is terminated by death of a party.
- Lease requires registration in some cases. But a license do not require registration.