Lease is a written agreement in which the owner of a piece of property allows an individual or business to use the property for a specified period of time in exchange for payments. The major advantage of leasing is that it enables a company to acquire the use of assets with very little or no down payment. Leases for facilities and leases for equipment are the two most common types of leases that entrep0reneurial ventures undertake. For example, many new businesses lease computers from Dell Inc. or other PC manufacturers. The advantage for the new business is that it can gain access to the computers it needs with very little money invested up-front.
Lease is a contractual arrangement whereby one party (the lessor) grants the other party (the lessee) the right to use an asset in return for periodic rental payments.
Webster Dictionary Meaning
- To hold under a lease; to take lease of; as, a tenant leases his land from the owner.
- A demise or letting of lands, tenements, or hereditaments to another for life, for a term of years, or at will, or for any less interest than that which the lessor has in the property, usually for a specified rent or compensation.
- The contract for such letting.
- Any tenure by grant or permission; the time for which such a tenure holds good; allotted time.
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