Lease Deals

By | August 29, 2012

Lease deals are referred to those contracts which allow a person to hire any goods for a short period of time based on certain clauses and conditions.

  • Certain companies or manufacturers allow one to hire goods on a contractual basis before actual purchase in order to gain a firsthand experience of the operation of the object. Lease deals are especially used in the case of cars.
  • It is a viable option for those who are not seeking to purchase an object but are desirous of using or possessing it for a short while.
  • This is an especially good option for people who are temporary residents in particular place and see no point in purchasing articles of daily use.

A lease deal must clearly contain details of the nature of the article in question. It must include all relevant information about the parties negotiating, the lessor and the party hiring. Payments, installments, rent charged, the necessary security deposit, payments to be made on damage etc. must be clearly mentioned to avoid ambiguity or discrepancies. All parties must be in accord before singing the lease deal. A lease deal is legally binding and must be treated with the utmost respect.

  • The advantages of a lease deal are the transparency ensured, since it is legally binding, chances of fraudulence are limited.
  • This clarity and safety is an important reason for people preferring to set the terms and conditions in writing.

The disadvantages include the finality of such a contract. There is very little scope for change once it is activated, allowing no flexibility.


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