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

What does a license denote in property law?

1. A permanent right to own a piece of land

2. A temporary right to use another's land

3. A type of lease agreement

4. A form of property ownership

The correct answer is: A temporary right to use another's land

In property law, a license specifically denotes a temporary right to use another person's land. This legal concept distinguishes itself from other property rights, such as ownership or lease agreements, by its nature of being revocable and not creating an interest in the property itself. A license allows individuals to enter onto land for a particular purpose, often without any intention to establish a lasting or formal property interest. Unlike a lease, which typically involves a contractual agreement that grants exclusive possession of the property for a specified term, a license does not confer such rights. For example, when a person is allowed to park on someone else’s property, that permission is a license — it can be revoked by the property owner at any time, and the person does not obtain any legal interest in the land. Understanding this distinction is essential in property law as it helps clarify the rights and limitations of usage between the owner and the licensee, emphasizing that such usage is granted temporarily and can be withdrawn at the discretion of the property owner.