The Occupancy License Agreement is commonly used in India when property owners or managers want to grant temporary, flexible rights to use a space without creating a landlord-tenant relationship. It's particularly relevant in commercial contexts such as co-working spaces, temporary office setups, educational facilities, and short-term commercial arrangements. This document type is governed by Indian law, specifically the Indian Easements Act, 1882, and various state-specific regulations. The agreement typically includes detailed terms about the permitted use of the space, license fees, duration, termination rights, and obligations of both parties. It's crucial to maintain clear distinction from a lease agreement to avoid legal recharacterization, making it essential to properly structure the rights and obligations within the agreement.
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1. Parties: Details of the Licensor and Licensee, including full names, addresses, and registration details if companies
2. Background: Context of the agreement and confirmation that this is a pure license arrangement, not creating any tenancy or other rights
3. Definitions: Key terms used in the agreement including 'Licensed Premises', 'License Fee', 'License Period', 'Permitted Use'
4. Grant of License: Specific terms of the license grant, emphasizing its non-exclusive and temporary nature
5. License Period: Duration of the license, including commencement date and end date
6. License Fee and Deposits: Amount, payment schedule, security deposit details, and utility charges
7. Permitted Use: Specific purposes for which the premises may be used
8. Licensee's Obligations: Responsibilities including maintenance, compliance with regulations, and conduct rules
9. Licensor's Obligations: Responsibilities regarding access, basic facilities, and maintenance
10. Restrictions on Use: Specific prohibitions and limitations on the use of the premises
11. Termination: Circumstances under which either party can terminate the license
12. Consequences of Termination: Actions required upon termination, including vacation and restoration
13. Notices: Process for formal communications between parties
14. Governing Law and Jurisdiction: Applicable law and courts having jurisdiction
1. Insurance: Requirements for insurance coverage, used when valuable property or high-risk activities are involved
2. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term licenses
3. Assignment and Sublicensing: Usually to prohibit these actions, included when dealing with corporate licensees
4. Alterations and Improvements: Include when licensee may need to make changes to the premises
5. Intellectual Property: Required when the licensed space involves branding or IP rights
6. Confidentiality: Important for commercial premises or when sensitive operations are involved
7. Dispute Resolution: Alternative dispute resolution mechanisms, useful for high-value licenses
1. Schedule 1 - Description of Licensed Premises: Detailed description of the premises including floor plan and measurements
2. Schedule 2 - License Fee Structure: Detailed breakdown of fees, deposits, and payment terms
3. Schedule 3 - Inventory List: List of furniture, fixtures, and equipment included in the license
4. Schedule 4 - House Rules: Detailed rules and regulations for using the premises
5. Schedule 5 - Handover Protocol: Procedure for initial handover and final return of premises
6. Appendix A - Required Permits: Copies of necessary permits and certificates
7. Appendix B - Service Level Standards: Standards for maintenance and services if applicable
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