Question

What are the basic
components of short working

Answer 1

The basic components of short working are: a minimum amount guaranteed to a lessor, by a lessee, in a particular time period.

Explanation:

Short working refers to the rent amount by which rent exceeds actual royalty. It is also known as royalty suspense and a part of royalty agreement.  

The basic components of short working are as follows:

i. A minimum amount guaranteed to a lessor.

ii. A minimum amount guaranteed by a lessee.

iii. A particular time period.