Q What is lock in period in a Leave and License agreement or registered rent agreement?
Ans: The Lock in period of the Leave and License agreement or Registered Rent Agreement is basically an understanding between the parties (i.e the licensor and the licensee) that (i) The Licensee shall not vacate the licensed premises within the period (Lock in Period) as mentioned in the agreement. And (ii) the Licensor shall not ask the Licensee to vacate the premises of the house within the period as mentioned in the Lock in period.
Q What if there is a violation of the Lock in period of a Leave and License Agreement by any of the parties?
Ans: Incase of violation of such understanding for Lock in period by any of the parties, it shall reimburse the other party for the losses incurred due to such early vacating.
For eg, if the Licensee vacates with in the Lock in period, then he shall reimburse the Licensor for the entire remaining Lockin period for which he is entitled to receive the fee as per the agreement.
Similarly, if the Licensor asks the Licensee to vacate the premises, he shall reimburse the Licensee for the loss and inconvenience caused, due to such early vacating.
Q. Is there any limit to the duration or tenure for the Lock in Period for a Leave and License Agreement?
Ans: The Lock in period is only valid till the period of the Leave and License Agreement. The Lock in period cannot exceed the term of the Leave and License Agreement. Technically a Leave and License Agreement is valid only for the period of 60 months, (ie 5 years) and so the Lock in period for the entire leave and license agreement cannot exceed 60 months (5 years).
The following is the language of the clause “Lock in Period” in an online Leave and License agreement or registered rent agreement:
Lock in period for a Leave and License Agreement:
Ans: Both the parties have agreed to set a lock-in period of __months during which
neither the Licensor shall ask the licensee to vacate the premises, nor the licensee shall vacate the premises on his own during the lock-in period.In spite of this mandatory clause, if the licensee
leaves the premises for whatsoever reason, he shall pay to the Licensor license fee for the
remaining lock-in period at the rate of agreed upon in the agreement. On the other hand, Licensor
shall compensate the Licensee for loss and inconvenience caused to the Licensee if he has been
asked to vacate the premises.
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