Skeleton Agreements

Each license agreement must include a framework – a skeleton – that supports other clauses or systems of clauses in the license agreement. Sometimes these skeletal elements are scattered throughout the agreement and can be difficult to find due to the heavy wording. The definition clause is the dictionary of the agreement. Parties to the Agreement may define terms such as “Software”, “Use” and “License Fees” to clarify the rights and obligations of the Agreement. For example, a grant clause could be as simple as “Licensor hereby grants Licensee a license to use the Software in the Territory for the duration of this Agreement.” In order to know the meaning of capitalized terms, the definition clause can be used. As a general rule, the consideration paid by the licensee to the licensor is a form of licence fee. Sometimes Licensee grants Licensor ownership of the improvements or a license to use the Technology owned by Licensee. The grant clause is the most important clause in any license agreement. It says “who gets what.” Although the agreement is obvious, it should be between the party who has the right to grant the license and the party who will exercise that license. .

Simple Apartment Sublet Agreement
Skeleton Wage Agreement

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