What Is Lease Finance And Lease Agreement (Define)

Here is the simple definition of the lease finance and meaning of lease. The number of people does not know the basic function and definition of the lease. The lease agreement is a legal document and format of lease agreement make according to the rule and regulation of countries law.

Rental Agreement, Lease, One Page Lease Definition, Lease Important Points
Lease Agreement
Point Out Lease Agreement, Definition, And Basic Knowledge.

Meaning of Lease - property transfer act defines lease as A lease of immovable property is a transfer of a right to enjoy such property, made for certain time, express or implied, or in perpetuity in consideration of a price paid or promised, money, share, service value to be rendered periodically on specified occasions to the transferor by the transferee, who accept the transfer on such terms”.

Actually, a valid lease means there must be a transfer of the right to enjoyment of the immovable property.

What is Lease Financing -

This is the process of the contract of financing or money lending against the cost of the asset. This conditional contract will be done between the lessor and the lessee. 

The particular assets required by lessees, which purchased by the lessor from a manufacturer of such asset opted by the lessee.

Essential part of Lease Financing -

As discuss above lease financing between lessor and lessee. This the contract between two people. 

The lease financing is based on the asset, equipment, and property. During tenure, ownership continues with lessor but the use of equipment allowed to the lessee.

 Term vary from case to case and fixation of the period of lease is mandatory. Lessee pay to the lessor is the lease rental. 

Termination will depend on the mutual agreements between them. Otherwise, termination is impossible. 

It may be possible that termination becomes conditional like mentioned the period, sells to third part etc…

Basic Agreement, Lease Agreement, Rental Agreement.
Classification Of Leases -

There is two type of lease count. First finance lease and second is an operating lease. The finance lease is the very long-term lease on fixed assets. 

All rewards forwarded to asset owner till transfer and operating lease is not a finance lease.

Lease Agreement -  

The lease agreement is the agreement, which is completed between lease and lessee. The terms and other details will be in written and mention the period of lease, amount and other details. 

Both people will sign the documents and follow the mentioned terms and condition. The proper agreement will be ready on stamp paper of prescribed value.

Here I have taken reference from the authentic book because the definition cannot be changed and modification will deform the exact meaning of Lease Agreement.

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