Legal Definitions - granting clause

A granting clause is the specific section within a legal document, such as a deed, lease, or license agreement, that clearly states what rights, interests, or property are being transferred from one party to another. It is the essential language that legally conveys or bestows a particular right or asset.

Here are some examples to illustrate the concept of a granting clause:

• Real Estate Deed: Imagine a homeowner, Sarah, selling her house to David. In the deed transferring ownership, the granting clause would typically state something like, "Sarah, the Grantor, does hereby grant, bargain, sell, and convey unto David, the Grantee, all that certain lot, tract or parcel of land, together with all improvements thereon, located at [Property Address], more particularly described as [Legal Description]."

  This example demonstrates a granting clause because these are the precise words that legally transfer the full ownership interest (the "fee simple" title) of the house and land from Sarah to David. Without this clause, the document would not effectively convey the property.

• Commercial Lease Agreement: Consider a business, "Tech Innovations Inc.," leasing office space from a landlord, "City Properties LLC." The granting clause in their lease agreement might read, "City Properties LLC, as Landlord, does hereby demise, lease, and let unto Tech Innovations Inc., as Tenant, and Tenant does hereby take and hold from Landlord, the premises located at [Office Suite Number and Building Address], for the term and upon the conditions hereinafter set forth."

  This illustrates a granting clause because it is the language that formally grants Tech Innovations Inc. the specific right to occupy and use the office space for a defined period, rather than transferring ownership of the property itself. It defines the interest (the leasehold) being conveyed.

• Patent License Agreement: Suppose a pharmaceutical company, "MediCorp," develops a new drug and wants to allow another company, "BioGen," to manufacture and sell it in a specific region. The patent license agreement would contain a granting clause stating, "MediCorp hereby grants to BioGen a non-exclusive, royalty-bearing license under Patent No. [Patent Number] to make, use, sell, offer for sale, and import the pharmaceutical compound known as 'CureAll' within the territory of North America."

  This is a granting clause because it explicitly defines the specific rights (to make, use, sell, etc.) that MediCorp is transferring to BioGen concerning its patented invention, limited to a particular geographic area and type of license, without transferring ownership of the patent itself.