A lease agreement is a document made between the owner of an asset and the person who wants to use the asset by paying for it. The owner here is known as the lessor and the user is known as the lessee.
Lease agreements specify the provisions related to the certain responsibilities and rights of both the lessee and the lessor. The lessee pays for the asset and acquires temporary possession of it as long as the length of the agreement permits.
There are various types of lease agreements, for example:
- Commercial lease agreements
- Vehicle lease agreements
- Property lease agreements
- Residential lease agreements
- Equipment lease agreements etc…
A lease agreement must include the following factors:
- The name and contact information of the lessor and the lessee.
- The date and location of the agreement.
- The effective date of the commencement of the agreement.
- The terms and conditions of the contract
- The cost of the asset and other monetary considerations.
- The method of payment
- Written consent of both the parties in form of signatures.
A lease can be either executed for a tangible property like land or a house or for an intangible property like the use of cable connection or computer software
Category: Lease Agreements