A leave and license agreement is a legal document that outlines the terms of a contract between a property owner (licensor) and a tenant (licensee). This agreement is commonly used for commercial properties, such as shops and offices, and is crucial to protect both parties` interests. In this article, we will discuss the format of a leave and license agreement for a shop.

1. Introduction

The agreement should start with an introduction that includes the names of the licensor and the licensee, the address of the shop, and the purpose of the agreement.

2. Term of the Agreement

This section outlines the duration of the agreement, including the start and end dates. It is essential to include the renewal terms and conditions, as well as the notice period for renewal or termination.

3. Rent and Security Deposit

The agreement should state the rent amount, including any additional charges, such as maintenance fees or utility bills. It should also mention the security deposit amount and the conditions for its refund at the end of the agreement.

4. Conditions for Use

This section specifies the permitted use of the shop and any restrictions set by the licensor. It should also cover the licensee`s responsibility for maintaining the shop`s cleanliness and any repairs needed during the agreement`s duration.

5. Termination and Surrender

The agreement should outline the circumstances that can lead to the termination of the agreement, such as the licensee`s failure to pay rent or any lease violations. It should also include the procedure for surrendering the shop at the end of the agreement.

6. Indemnity and Liability

This section mentions the liability of both parties for any damages, losses, or injury occurring during the agreement`s duration. It should also detail the insurance requirements for the shop and the licensee`s responsibility for securing the necessary coverage.

7. Miscellaneous Provisions

This section includes any additional terms or conditions that are not covered in the previous sections. It may cover matters such as sub-letting, dispute resolution, and governing law.


A leave and license agreement for a shop is a critical document that protects both parties` interests. Ensuring that all the necessary details are included can prevent misunderstandings and disputes in the future. By following the format outlined above, you can create a comprehensive leave and license agreement that covers all the essential elements.