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CS Professional · Drafting, Pleadings and Appearances · Types of Documents

Dhruv Ltd leases a factory shed to Esha Pvt Ltd under a draft lease deed. The draft states the rent and the term but omits any description of the premises and the date of handover. What is the best assessment of the draft?

The draft is deficient. A sound lease deed must identify the parties, precisely describe the premises, and state the term, rent and handover of possession. Leaving out the property description and possession date creates uncertainty and dispute risk, and oral inference cannot cure it.

  1. AAcceptable, because rent and term alone make a lease
  2. BAcceptable, because description can be inferred orally
  3. CDefective, because it should be a licence not a lease
  4. DDeficient, because essential particulars like the property description, parties, term, rent and possession should appear in the deedCorrect

Explanation

A lease deed should identify the parties, describe the demised property precisely, state the term, rent and the date of delivery of possession. Omitting the premises and possession date leaves the subject matter uncertain and invites disputes. Relying on oral inference defeats the purpose of a written deed.

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