What is a lease?
A lease is a contract where one party (Lessor) allows another (Lessee) the exclusive right to use and possess its equipment, including vehicles, for a specific period of time. The contract obligates the Lessee to make periodic payments to the Lessor for the use of the equipment. A lease, utilized as a source of financing, is usually a long-term agreement that is non-cancelable. The Lessee is responsible for all peripheral costs associated with the use of the equipment, including taxes, insurance and maintenance during the term of the lease. At the end of the lease term, the Lessee may have an option to extend the lease term, return the equipment or purchase it at a predetermined option price.
A lease is a legally enforceable contract which defines the relationship between an owner, the lessor, and a renter, the lessee. A typical lease spells out all of the terms involved in a land or merchandise rental agreement, including the length of time a lessee may use it and what condition it must be in upon return to the lessor. The amount of payments and any financial penalties for late payments may also be included in a lease contract. Most consumers encounter a lease when renting housing or leasing a car. A lease can be very short-term (a few weeks or months), or it can be extended for a number of years. Many small businesses and retail stores have lease agreements for 10 years or more, and renewal of the lease may just be a formality. Apartment renters, however, rarely sign a lease extending past one year of occupancy. Those who lease vehicles usually sign two-year agreements as opposed to five-year financing plans for buyers. A lease agreement protects both the lessor and the l
A lease is a contract between a lessor (the property owner) and a lessee (the property user) for the use of a vehicle or property, subject to stated terms and limitations, for a specified period and at a specified payment. A consumer lease is a lease between a lessor and a lessee for the use of personal property to be used primarily for personal, family, or household purposes for a period of more than 4 months and with a total contractual obligation of no more than $25,000. A lease meeting all of these criteria is covered by the Consumer Leasing Act and the Federal Reserve Board’s Regulation M. If any one of these criteria is not met–for example, if the leased property is used primarily for business purposes or if the total contractual obligation exceeds $25,000–the Consumer Leasing Act and Regulation M do not apply. Note: The total contractual obligation is not the same as the gross capitalized cost. Some leases with a gross capitalized cost of over $25,000 may be covered by Regulat
A lease is a contract between the landlord and the tenant. Once entered into, a lease contract binds both parties to perform the promises contained in the lease and gives rise to a claim for damages in the event one party breaches its duties to the other. Since you can wind up owing a landlord literally thousands of dollars if you default in rent payments, it is vital to be as knowledgeable as you can about the process before you sign a lease.
