-Differences between a lease and a license | Cyprus Mail

used for business, may transfer their use and management to another person by means of a written agreement for a fixed or periodic period of time for a specified fee. They call this agreement a license, the consideration a license fee, and the lessee a licensee. However, the above agreement is actually a lease which can become a statutory lease. The words used by the parties are irrelevant in determining whether their agreement creates a lease or grants a license. The agreement must be read as a whole together with the transaction. The parties cannot turn a lease into a license simply by calling it one.

The President of the Limassol and Paphos Rent Control Court, George Pagiasis, considered this topic in''s September 29 judgment on eviction claims E169/2021 and E58/2022. He stated that a lease is a bilateral agreement relating to a real fact and requiring documentation. A lease is usually made expressly and in writing. But a lease can also be established based on the intentions and behavior of the parties entering into the contract. Under the doctrine of contractual relations, a lease binds only the parties to the contract, except for certain exceptions such as agency, assignment, and repair.

'Statutory' is a contractual lease that is subject to the Rent Control Act, with the result that the relationship between the parties cannot contravene statutory provisions. Statutory leases relate to''premises and is independent of the relationship between owner and tenant. It is not a contract but a personal right of the statutory tenant not to be evicted from the premises.

The license, meanwhile, is largely concerned with legalizing a situation that would otherwise be considered an unlawful interference on the land.