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License agreement format for commercial property. License agreement format for office space.

Format of Licence Agreement for office space is given below. If the License agreement is for less than 11 months it need not be registered. If the License agreement is for more than 11 months it is to be registered with the Sub-Registrar in the particular area. License Agreement for 11 months can be prepared on Rs. 100/- stamp paper.




THIS AGREEMENT IS MADE this ____ _____ BETWEEN _____________________ Son / Daughter of Shri ______ Resident of ___________________________________________________________ (hereinafter referred as the LICENSOR) of the one part


____________________Pvt. Ltd. through its Director Sh./Smt. ______________________ Son / Daughter of Shri ___________________ Resident of __________________________ (hereinafter referred to as the LICENSEE) of the other part.

AND WHEREAS the LICENSOR is the owner of Flat No. _______________________________ .

AND WHEREAS the LICENSEE, the said _________________________, through its Director Sh./ Smt. ______________________, has approached the LICENSOR to grant the company permission to use the said Flat No. ______________________________ purely on the license basis (here-in-after referred as demised premises).

WHEREAS the Licensor has agreed to grant the license to use the demised premises on the following terms and conditions for a period of 11 (Eleven) Months only.   After 11 months, the Licence will be extended with the mutual consent of both the parties for a further period of 11 months only.



1. The Licence Agreement comes into effect from --/--/---- and ends on --/--/----.

2. That the Licensee shall pay to the Licensor a sum of Rs. _______/- (Rupees ___________ only) per month as licence fee, payable in advance by crossed cheque, subject to realization/pay order/cash favouring Sh./ Smt. _________________.

3. That the electricity charges, maintenance charges and other extra charges shall be paid by the Licencee at the said demised premises/space.

4. That the Licence fee and other charges are to be paid by 7th of each English Calendar month in advance by the Licensee to the Licensor.

5. That the Licensee shall use the space in the flat orderly manner for only legal and legitimate uses.

6. That the use of the space is available for use between 10 a.m. to 7 p.m. on working days excluding holidays observed by the Licensors/Builder.

7. That any illegal acts done by the Licencee shall be at the consequences of the Licencee and the Licensor shall be at liberty to treat the licence as terminated forth with.

8. That the Licensor shall not be responsible for any profit or loss incurred  by the Licencee or by use of business centre in the space or otherwise through theft, pilferage, fire, etc.

9. That the Licensee or the Licensor can terminate the License Agreement before --/--/---- by giving 30 days notice in advance in writing by hand either side.

10. That the Licencee shall not store inflammable, hazardous and/or any offensive, illegal or contraband goods in the said licensed flat during the licence period or till the enjoyment of the licence and he will not conduct himself or through his servant/attorneys in any manner, which may cause nuisance to any other.

11. That the Licence is not transferable nor can it be sub/licensed by the Licensee. She shall not allow any other person for the use of the said flat.

12. That any change in the constitution of Licensee would be deemed to be termination of the License Agreement and Licensor shall be at liberty to stop ingress to the Licensee.

13. That once the License is terminated by notice or otherwise, the Licensor have complete right to take physical possession of the flat and remove any material lying therein without any legal/penal consequences to the Licensor or any claim by the Licensee on the Licensor. 

14. That the Licensee would be liable to pay all the damages or loss to the Licensor in case of negligence or deliberate act or part of the Licensee during the License period for any damage to the property or the space etc.

15. That the Licencee shall observe and perform all the terms and conditions of the Licence Agreement and will also observe and perform in accordance with the rules and regulations of Delhi Municipal Corporation Delhi Development Authority, Municipal Corporation of Delhi  and other Government Authorities and the Maintenance Society of the Building, and Nehru Place Association etc.

16. That the Licensee hereby undertakes to remove his goods/effects from the demised premises/space after clearing all his dues of licence fee and other incidental charges on the termination of the License Agreement.

17. That in case the Licence fee is in arrears even for a month, the Licence Agreement will be deemed to have automatically terminated and the Licencee shall not have any right to use the space after receipt of Regd. A.D. Notice from the Licensor to such effect and he shall be entitled to prevent the Licensee from entering upon the said space.

18. That in case Licencee is found guilty of breach of any of the terms and conditions in this Licence Agreement then the License Agreement shall stand terminated with legal consequences.

19. That it is expressly agreed and declared between both the parties that Licence agreement does not confer any tenancy or sub-tenancy right in favour of the Licencee and the permission to use in demised premises is by way of licence only. The legal and actual physical possession of the said premises remains the Licensor as there is only one passage for entrance of the premises.

20. That the Licensee will be solely responsible for Income Tax, Sales Tax, Excise, Custom Maintenance or any other statutory body or other liability on his business carried out from the demised premises/space and the Licensor would not be responsible.

21. That the lock and key of the main shutter would always remain in the possession of the Licensor only.

22. That the Licensee would make all payment regarding fee or any other services only to the Licensor and any employee of the Licensor.

23. That the Licensee shall pay Rs. _______/- (Rupees __________ only) as interest free security to the licensor against a proper receipt refundable at the time of handover peaceful vacant possession of demised premises/space when the Licence Agreement comes to an end and the Licensee has removed all his goods and effects and on clearance of all dues. However if the Licencee vacates the premises before & months as amount equivalent to 15 days license fee shall be deducted from the security.

24. That for the purpose of giving any notice or tendering any communication of one party to the other party, the address of each party as mentioned above or such other address as may be later communicated in writing by the concerned party shall be deemed to be the proper address at which such notice or communication is made.

25. The space in the flat is made available with exclusive sufficient light and other gadgets with separate sub-meter. The Licensee shall not install electricity / water in his own name in business centre.

26. Delhi Courts will be the competent Court of jurisdiction in case of any dispute that may arise in respect of the demised premises.






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