Explain the difference between royalty and rent. State the advantage to landlord for imposing the condition of minimum rent
Answers
Answer:
Explanation:Answer to the first part of the question
The following are some the difference between Royalty and Rent:
•The term Royalty refers to the payment made for exclusive use for both tangible and intangible assets whereas Rent refers to the payment made towards use of tangible assets only.
•The payment of Royalty is made on the basis of output or sale, whereas Rent is paid for a specific period.
•The payment of Royalty varies as per sales or output whereas Rent is always fixed
•The parties involved in Royalty are known as lessee, lessor, patent holder, patentee, publisher author etc whereas there are only two parties involved in Rent landlord and tenant.
•In case of Royalty agreement there is a clause of making minimum payment whereas in case of Rent there is nothing like minimum rent.
Answer to the second part of the question
The term Minimum Rent is also referred as fixed rent,dead rent, flat rent, contract rent and rock rent.
The advantage of such rent to the landlord is that it guarantees a minimum sum of money to be received by him/her from the tenant, irrespective of any benefit derived or not by the tenant.It is a pre-determined rent agreement agreed upon by both the tenant and landlord.
Hope this helps.
Answer:
Royalty is the thought payable for the utilization of exceptional ideal for both unmistakable and impalpable resources. In any case, rent is the thought payable for the utilization of just substantial resources. Royalty is paid either based on yield or deal, though rent is paid based on period.
Royalty shifts based on yield or deals. Be that as it may, rent is fixed. In royalty, parties are known as resident, or distributer, and lessor, patent holder, or creator, etc.