Future Business Leaders of America (FBLA) Business Law Practice Exam

What characterizes a temporary right to use another’s land?

1. It is transferable and permanent

2. It requires a formal agreement

3. It is termed as an easement

4. It is known as a license

The correct answer is: It is known as a license

A temporary right to use another’s land is known as a license. This legal concept allows a person to enter and use someone else's property for a specific purpose without transferring any ownership interest in the land. Unlike an easement, which is a more permanent and often transferable right that benefits the property, a license is generally revocable and does not confer any lasting claims over the property. A license can be granted verbally or informally and does not usually require a formal agreement, making it distinct from other legal rights like leases or easements. This flexibility is what characterizes licenses as temporary permissions rather than enduring rights. In essence, a license serves specific needs on a brief basis and can be terminated at any time by the property owner, highlighting its temporary nature.