Jigsaw piece puzzle

Grant: Definition, Example and Related Terms

What is a Grant ?

A grant, in the context of commercial contracts, is a legal tool used to provide someone else a right, privilege or license without the need for them to give something back. It's kind of like a gift, but in the business world. The person or organization that gives the grant is known as the 'grantor', while the one who receives it is called the 'grantee'. This transfer of rights, licenses or privileges happens under specific conditions outlined in a contract. A grant can cover various items such as intellectual property rights, use of physical assets, or access to certain business resources or services. Unlike a sale, a grant doesn't require the grantee to pay the grantor. However, the grantee must adhere to the terms outlined in the grant agreement.


  • Scenario Description
    A company named TechZ grants a startup named InnovateX the right to use its patented technology. In this case, TechZ is the grantor and InnovateX is the grantee. TechZ has granted InnovateX the right to use a certain patented technology. This means InnovateX can use this technology without fear of legal repercussions, provided it follows the conditions outlined in the grant agreement. Such a grant could help InnovateX build its products or services without spending time and resources on developing a similar technology.
    A software company grants a non-exclusive license to a client to use its software. Here, the software company, as the grantor, is giving the client, who is the grantee, the right to use its software. This is a non-exclusive license, which means that the software company can also grant the same rights to other clients. The client can use the software in accordance with the terms of the grant, but they do not own the software and cannot claim it as their own.