A license contract can be of many types. Some license contracts give an individual, corporation, or an independent business entity the permission to carry out an activity, while some other license contracts may be intended for the usage of a particular product for certain duration. Various types of license contracts are in everyday use like driving license contract, software license contract, technology license contract, etc. The license contract should clearly mention on what grounds are the parties or a party allowed to make use of or carry out a specific activity. The following gives important information that should comprise the license contract.
Points to be kept in mind while preparing a license contract:
- The contract should start by listing the name of the parties who made the contract and agreed to the terms and conditions as written on the license contract.
- The date and place of the agreement of the license contract between the parties also is a mandatory requirement.
- The terms of the license contract should mention what permissions one party is granting to the other. And what are the circumstances under which the license contract can be termed as broken or compromised.
- The rights and responsibilities of both the parties of the license contract is an essential requirement. Henceforth the compliance to the license contract would be guided under the written clauses in the license contract agreement.
- If there are any special words used, then their definition should be clearly and precisely defined so that there is no space left for misusing the usage of the terms specified in the license contract.
- The effective date from which the license contract would come into force is also to be mentioned.
- Another important segment of the license contract comprise of the fields in which the license contract can be applicable and field in which applying the license contract can be termed as violating the contract.