A Lease means an assignment of the right to ownership and use of merchandise for a period of time in return for some mutually agreed on remuneration or recompense. A sale, whether it is a sale on agreement, or a sale or return, or retention or creation of a collateral interest, is not labeled as a ‘lease. ’ Whether it is a real estate property that is to be leased or an automobile or any other kind of property, it must be done within the terms of a legal and binding contract to avoid misunderstanding, loss and breach of trust. A lease contract is an officially authorized document or record that certifies a lease transaction between the individual renting the property and the leaseholder.
A leaseholder can enter into a lease contract with the individual leasing property by approaching a lawyer and stating his assets and choices of remuneration. The individual leasing the property then states his conditions for leasing the property, as well as the expected remuneration. When the two mutually agree on payment, the contract is carefully drafted by the leasing lawyer or agent and signed by both parties. The period of time the recompense must be made is also stipulated in the contract. In case of breach of contract by the leaseholder through non payment of remuneration or repeated, the contract also mentions the penalty incurred therein. Similarly, there is penalty for the individual leasing the property when there is compromise on promised quality, as well as unnecessary inconvenience caused to the leaseholder. However, it must be noted that lease contract are more in the interest of the leaseholder.
Sometimes, a lease contract is combined with an option-to-purchase contract, where at the end of the lease term, the leaseholder can buy the property under mutually agreed terms.
Contracts provides detailed information on Contracts, Business Contracts, Legal Contracts, Employment Contracts and more. Contracts is affiliated with Divorce Legal Forms .