A licence gives far more restricted rights than a lease. For example, it does not normally give an interest in land to the licensee, nor does it grant the right of exclusive possession.
There are three types of licences over land:
- a bare licence - such a licence is given without consideration on the part of the licensee and may be revoked at any time;
- a licence coupled with an interest - for example where the right to take standing timber from land is granted, a licence to go on to the land to cut the timber is necessarily implied;
- a licence of value - consideration is paid by the licensee but no interest in the land passes; for example a licence to enter a theatre to view a performance implied in the sale of a ticket.