There are different types of licenses. My Office 2007 indicates three:
1. Retail License Terms
2. OEM License Terms
3. Media-less license Kit Terms
I don't know if these are the only types. But, presuming that you have #1,
the terms relevant to your original question are:
2. INSTALLATION AND USE RIGHTS. Before you use the software under a
license, you must assign that license to one device. That device is the
“licensed device.†A hardware partition or blade is considered to be a
separate device.
a. Licensed Device. You may install and use one copy of the software on the
licensed device.
b. Portable Device. You may install another copy on a portable device for
use by the single primary user of the licensed device.
c. Separation of Components. The components of the software are licensed as
a single unit. You may not separate the components and install them on
different devices.