There are several factors which have to be considered while framing lease documents. Lease comments are legal documents which set the terms and conditions by which lease agreements will be governed. They must therefore be as accurate as possible and the clauses must be watertight with no legal loopholes. In order to ensure transparency and clarity, all aspects influencing the deal must be incorporated in a lease deal. The factors which must be considered during the framing of a lease deal are as follows:
- The terms and condition governing the lease agreement must be specifically mentioned.
- Care should be taken to ensure that the clauses are clear, cogent and watertight and that there is no scope for ambiguity.
- If the object of the leased agreement is a tactile, tangible object, its conditioned must be described to avoid any damage during the lease duration.
- The lessor and the lessee must be clearly identified and their particulars must be noted with clarity. They must also incorporate their signatures in the ease deal without which such a deal will not be considered valid.
- The lease document must conform to the appropriate legal terminology without which it loses its efficacy and its character as a lease document.
- The lease deal must also outline the duration of the deal as well as the initial and recurring payments that have to be made by the lessee to the lessor.
- The lease document should also mention the penalties that malpractices will incur if the terms and condition of the agreement are not adhered to.
A lease deal is an effective solution if it is properly framed. Legal advice must be taken before framing of a lease deal as it can have serious repercussions if written in the wrong manner.