Leasing contract Definition of leasing contract Glossary

The leasing contract, also known as a lease contract, is the transfer of a product or service to a lessee who must pay for the transfer of rights of use to a lessor.

Thus, the concept of a leasing contract is understood as a means of financing in which the lessee acquires somefixed assetsto be able to enjoy a good. Meanwhile, the role of the lessor is limited to delivering the property to the extent that it will receive a rent. Furthermore, the meaning of the leasing contract necessarily implies the possibility of purchasing the asset in question in the long term or at the end of the leasing process.

Characteristics of the leasing contract

Next we are going to see some of the characteristics of the leasing contract that perfectly define this type of contract and how this way of finance a franchise or a company:

  • The lessor has the duty to deliver the property in perfect condition
  • The lessor must compulsorily state the purchase option in the contract
  • The landlord must compulsorily receive a rent from the tenant
  • In the same way that the landlord has to deliver the property in good condition, the tenant has to do the same and keep it in perfect condition

Know all the information about the lease, how it works and the different advantages it has.

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