A lease allows one party to use an asset owned by another party in exchange for payment. This lesson introduces the people, purpose, and common terms of lease agreements.
A lease is a contractual arrangement under which an owner, the lessor, grants another party, the lessee, the right to use an asset. The lessee normally makes agreed rental payments and follows conditions governing use of the asset. Ownership usually remains with the lessor; the lessee receives a right to use, not ownership of, the asset.
All flashcards
Lease
A contractual arrangement granting a lessee the right to use an asset under agreed terms; ownership generally remains with the lessor.
Leasehold interest
A tenant's right to possess and use leased premises for the agreed term.
Exclusive possession
Control of premises to the exclusion of others, subject to the lease, law, and permitted exceptions.
Periodic tenancy
A tenancy that renews for recurring periods, such as month to month, subject to applicable notice rules.
Sublease
An arrangement in which a lessee grants a third party the right to use all or part of the leased property.
Quiz questions
When a tenant subleases property, what is generally true of the tenant's obligations to the original lessor?Answer: The tenant generally remains liable under the original lease.
How does a fixed-term tenancy normally end?Answer: It ends when the stated term expires, unless the contract or law requires otherwise.
What is generally considered when distinguishing a lease from a license?Answer: The arrangement's substance and relevant legal rules, assessed as a whole.
Which statement about writing requirements for leases is accurate?Answer: Many jurisdictions require leases longer than one year to be written.
Which factors can be relevant to whether standard-form lease terms are transparent?Answer: Plain language, legibility, clear presentation, and ready availability.
Based on the Wikipedia article Lease, licensed CC BY-SA 4.0. Adapted into a summary, flashcards and quizzes.