Lease

lease   (lēs)    n.   A contract granting use or occupation of property during a specified period in exchange for a specified rent. The term or duration of such a contract. Property used or occupied under the terms of such a contract. v.   tr. leased, leas·ing, leas·es To grant use or occupation of under the terms of a contract. To get or hold by such a contract. [Middle English les, from Anglo-Norman, from lesser, to lease, variant of Old French laissier, to let go, from Latin laxāre, to loosen, from laxus, loose; see slēg- in Indo-European roots.] leas'a·ble adj., leas'er n.

lease

A contract that grants possession of property for a specified period of time in return for some kind of compensation.

lease  (n.)

Lease

An agreement in which one party gains a long-term rental agreement, and the other party receives a form of secured long-term debt.

Investopedia Commentary

The lessee gains a long term contract for the use of an asset, and the lessor is assured of regular payments for a specified number of years.

Related Links

Pros And Cons of Leasing Vs Buying A Vehicle

See also: Capital Lease, Debt, Graduated Lease, Leaseback, Lessee, Lessor, Operating Lease, Synthetic Lease

lease

An agreement that permits one party (the lessee) to use property owned by another party (the lessor). The lease, which may be written either for a short term or for a long term, often results in tax benefits to both parties. See also capital lease, gross lease, leveraged lease, net lease, operating lease.

Main Entry: lease
Pronunciation: 'lEs
Function: noun
Etymology: Anglo-French les, from lesser to grant by lease, from Old French laisser to let go, from Latin laxare to loosen, from laxus slack
1 a : a contract by which an owner of property conveys exclusive possession, control, use, or enjoyment of it for a specified rent and a specified term after which the property reverts to the owner; also : the act of such conveyance or the term for which it is made —see also SUBLEASE —compare EASEMENT, LICENSE security interest at INTEREST 1, TENANCY
NOTE: Article 2A of the Uniform Commercial Code, which governs leases where adopted, defines lease as “a transfer of the right to possession and use of goods for a term in return for consideration.”

---

build·ing lease
: GROUND LEASE in this entry

---

consumer lease
: a lease made by a lessor regularly engaged in the selling or leasing of a product to a lessee who is leasing the product primarily for his or her personal or household use

---

finance lease
: a lease in which the lessor acquires goods from a supplier in accordance with the specifications of the lessee
NOTE: Under section 2A-103 of the Uniform Commercial Code, before the lessor signs the lease or the lease becomes effective, the lessee must receive or approve of a copy of the contract by which the goods were acquired or must receive a statement of terms (as warranties, disclaimers, and liquidated damages) relating to the contract or notification of where such information can be obtained.

---

ground lease
: a lease of land usually for a long term in consideration of the payment of rent and with the agreement that the lessee build or improve a structure on the land called also building lease

---

mineral lease
: a lease granting the right to work a mine and extract the minerals or other valuable deposits from it under prescribed conditions (as of time, price, or royalties) called also mining lease

---

net lease
: a lease requiring the lessee to assume all operation expenses (as for maintenance, insurance, and taxes) in addition to the payment of rent

---

operating lease
: a lease of property and esp. equipment for a term which is shorter than the property's useful life and in which the lessor is responsible for certain expenses (as taxes)

---

per·pet·u·al lease
/p&r-'pe-chu-w&l-/
: a lease renewable forever at the lessee's option

---

proprietary lease
: a lease used to convey to a member of a cooperative the exclusive possession of a residential unit

---

true lease
: a lease that resembles a security agreement but retains the attributes of a lease b : property and esp. real property that is leased
2 in the civil law of Louisiana : a contract by which a person provides labor or services for a price

lease

see new lease on life.

lease

a contract for the exclusive possession of property (usually but not necessarily land or buildings) for a determinate period or at will. The person making the grant is called the lessor, and the person receiving the grant is called the lessee. Two important requirements for a lease are that the lessee have exclusive possession (nonexclusive possession would call for a license) and that the lessor's term of interest in the property be longer than the term of the lease (a grant involving an equal term or period would comprise a conveyance or assignment, not a lease).

Learn more about lease with a free trial on Britannica.com.