A lease purchase agreement contract is a document which contains the legal provisions of a lease purchase agreement. Such an agreement is predicated upon the fact that the lessee shall purchase the item that has been leased to him by the lessor after a certain period of time, usually after the end of the lease duration. This works out well for both the lessor and the lessee. While the latter can save up for the actual purchase and obtain the item at a lower rate, the lessor too gains eventually in the end as the lessee pays rentals as well as a lump sum amount for the item.
Sample Lease Purchase Agreement Contract:
This document is to ensure that the lessee in the automobile lease initiated on the 3rd day of June 2011, Mr. John Gills, shall purchase the item that was leased [Fiat Pare 37, License plate number WIS63456] at the end of the lease duration. The automobile lease was commenced on 3rd June 2011 and the date of termination is 2nd June 2012. The monthly rental paid by the lessee in this duration of the lease is 200 USD. Thus, the final price at which he is expected to make the purchase is 2million USD.
The lessee, according to the original lease purchase contract, is obligated to purchase the automobile in question, failing which he has to pay a compensation of 3 million USD to the lessor and may even face penalty depending on the lessor’s actions. All other terms and conditions of the lease purchase agreement are mentioned in the Annex Document 1.
Signature of lessor: _________________________
Signature of lessee: __________________________