This Licence is designed for use by the owner of land who wishes to grant to the owner of livestock rights for grazing over it. It is not intended for use in cases where the Licensee is carrying on a business. It is designed for use for a single grazing season, but it could be modified to apply to a shorter or longer period.
The rights are granted by way of a personal licence giving permission for entry onto the land. The Licensor keeps possession and occupation of the land, and so no tenancy is created. This is essential to avoid the arrangement between the parties being treated as a farm or other business tenancy. This would have statutory rights regarding rent, notice to quit and other important matters, which the Licensor may wish to avoid.
There is a Schedule setting out more details including the obligations of the Licensee.
The Licence may require some modification to suit the particular set of circumstances. It does not include any obligations for the Licensor as none is considered necessary in a standard Licence. However, if any are required, they can be included by adding a clause to the Licence (following clause 3) and a Part 4 to the Schedule
THE FORM OF THE LICENCE
The full names of the Licensor and the Licensee should be given at the beginning. If there are more than one, then all names should be given. In the case of a company, then its full company name and its registered office should be given.
The definitions should be completed where there are blanks.
The “Land” is the land over which the rights may be exercised and you will need to complete the description in Part 2 of the Schedule. It will probably be best to refer to a plan as well so that the extent of the Land is clear and, if so, then a copy of the plan should be attached to the Licence. A plan could also be used to show the route of any access if clause 3.5 is to be used.
The “Licence Fee” is the single amount payable by the Licensee for the duration of the Licence Period, whether this is to be paid as a single sum at the beginning or by instalments.
The “Licence Period” should refer to a specific period of time with dates being inclusive. It may be that the Licence Period is to start on a future date rather than on the date of the Licence.
The “Maximum Number” is the maximum number of animals which may graze the Land at any one time.
2. PAYMENT OF THE LICENCE FEE
The Licence Fee may be paid either on or before the Licence is dated or perhaps by instalments, and so this clause should be amended to apply to the arrangement. Reference should also be made to clause 1 in Part 3 of the Schedule.
3. THE GRANT AND RESERVATION
This clause sets out the grant of the Grazing Rights to the Licensee and those which are reserved to the Licensor.
A right of access to the Land has been included as an option, but this can only be included if the route is owned by the Licensor or if the Licensor has private rights of access over it to the Land. Access may, of course, be from the public highway or over public rights of way and, if that is the case, then this clause should be deleted.
The Licensee may want to allow animals belonging to the Licensor or to others to graze the land as well, if there is likely to be capacity for this. If so, then clause 3.6 can be used.
4. THE LICENSEE’S OBLIGATIONS
These are set out in Part 3 of the Schedule. The basic obligations have been included, but you may want to include others depending on the nature of the Land and the operations of the Licensor being carried out on it and on any land nearby.
If the Licensor is in receipt of grants or other agricultural payments, then further obligations may be required to ensure that the Licensee does not prejudice the payments.
If there are buildings on the Land, then obligations may be needed to deal with this. Perhaps the Licensee is to be restricted from using any buildings or, if they are to be used, then perhaps they are to be kept in good repair by the Licensee, but without imposing any obligation to carry out improvements.
You will need to refer carefully to the relevant insurance policies of both parties to make sure that all usual risks arising under the arrangements between the parties are covered. This clause may then have to be amended to suit the case. The Licensor may well be liable for injury to people on the Land, particularly if there is some danger for them other than one arising from the Grazing Rights being exercised.
6. TERMINATION OF THE LICENCE
In the ordinary way, the Licence will continue until the end of the Licence Period. However, it will come to an end earlier on the happening of any of the events referred too in clause 6.1. In addition, the parties may want to include clause 6.2 so that either party can end the Licence earlier. The Licensor may, for example, wish to sell the Land before the Licence Period expires to a purchaser who wants vacant possession.
7. LICENSOR’S RIGHT TO ASSIGN
The Licensor may wish to sell the Land to a purchaser who is happy to accept the Licence, and so the Licence can be assigned to the purchaser under this clause.
These are self-explanatory.
The Licence should be executed by the parties and dated as soon as they have finalised all the terms. The Licence Period can begin on the same day as the date of the Licence or later. Completion in advance will ensure that both parties are committed to the arrangement and this has the benefit of certainty for both.
The Licence Fee (or the first instalment) should ideally be paid when completion takes place even if this is before the Licence Period begins.
The Licence should be prepared in duplicate with each copy being executed at the end by all the parties. Each party should then keep one copy.