what is lease

A lease is a contractual arrangement between two parties, the lessor and the lessee, where the lessee pays the lessor for the use of an asset, such as property, buildings, vehicles, or industrial or business equipment. The lease guarantees the lessee use of the asset for an agreed-upon length of time while the lessor is assured consistent payment over the agreed period. A lease is a legal, binding contract outlining the terms under which one party agrees to rent property owned by another party. The terms of a lease agreement include the rental amount, length of time for the contract, as well as any other stipulations agreed upon by both parties. A lease can be for a fixed period of time, called the term of the lease, and may be terminated under certain conditions. A lease is a form of incorporeal right, and both parties are bound by the terms of the contract, with consequences if either fails to meet the contractual obligations.