This commercial display advertising contract is designed for use by the owner of a building or other structure who wishes to grant the right for advertisement billboards or hoardings to be affixed to it.
This five page document contains 7 clauses covering
- definitions and interpretations
- the grant of the licence
- continuation of the licence after the licence period
- licensee’s obligations
- owner’s obligations
- a miscellaneous clause addressing, among other things, third party rights and liability for damage
Three Schedules are included, allowing parties to set out details of the affixing methods, boards and display site.
You need this document if you are the owner of a building, looking to grant the right for advertising billboards to be attached to your property.
This Licence is designed for use by the owner of a building or other structure who wishes to grant the right for advertisement boards or hoardings to be affixed to it.
The right is granted by way of a licence for a fixed term and it can then be renewed by the parties from month to month. The owner should take into account the fact that the existence of the Licence may make it difficult to sell the building or to obtain a mortgage. A long period may not, therefore, be appropriate.
The owner may be the owner of the freehold of the building or a tenant or lessee under a lease. If the owner is not the freeholder, then the right to grant the licence may be prohibited under the terms of any tenancy or lease, or the landlord’s consent may be required first. If there is a mortgage on the building, then it may prohibit the grant of the licence and so the position with the lender should be checked.
THE FORM OF THE AGREEMENT
The full name of the Owner and address should be given at the beginning. If there is more than one, then all names should be given. If the Owner is a company, then its full company name and its registered office should be given. The word “Owner” should not be altered.
The full name of the Licensee and address should be given. The Licensee should be the person or company which owns the Boards. If there is more than one, then all names should be given.
The Licensee is to have access to land so that the Boards can be installed and maintained. The ‘Access Land’ is defined by reference to a plan. If no plan is available, then the area of land should be defined.
The postal address of the Building should be inserted and also the amount of the Licence Fee and the Licence Period.
The details in Parts 1, 2 and 3 in the Schedule should be completed. A full description should be given in each case.
2. THE GRANT OF THE LICENCE
The rights granted are set out in clause 2 and include the right to illuminate the Boards. The Licensee may be able to put in a supply of electricity. If so, then a separate meter may be required. Alternatively, the Licensee will have to reimburse the Owner for the supply if it is taken from the Building. You will have to agree a rate for this and adapt the Licence accordingly. If the Licensee does not require to illuminate the Boards, then clause 2.1.4 should be deleted and clause 4.6 amended by the deletion of the last few words.
If the Licensee requires other rights, then these should be added to clause 2.
3. CONTINUATION OF THE LICENCE AFTER THE LICENCE PERIOD
The Owner may prefer the Licence Period to be quite short in view of the comments about this in the Introduction and so these provisions for continuation may not be appropriate.
4. LICENSEE’S OBLIGATIONS
These are set out in clause 4. You may want to add others to suit the particular case.
In view o the obligation in Clause 4.1, it will probably be best for the parties to agree the form, design and any wording first before the Licence is dated. A copy of the drawing should be signed by the parties and attached to the Licence, and a reference to it made in Part 2 of the Schedule.
5. OWNER’S OBLIGATIONS
Clause 7.5 provides that the Owner is not liable by reason of the rights being exercised. However, a person injured by the Boards collapsing, for example, may have a claim against the Owner. The claimant will not know the details of your arrangement with the Licensee. In any event, the Owner may be legally liable to the claimant. The Owner, therefore, should look into the position to see if the Building insurance policy covers the situation and, if not, separate cover taken out.
Value Added Tax
If the Owner is registered for value added tax, then advice should be taken to see if it is payable on the Licence Fee.
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