What is a Lease

By | August 9, 2011

Leases are documents which outline the agreement between two parties regarding the loan of a certain product, or an apartment, or any service of the lessor by the lessee. In order to ensure fairness and justice on both sides, and to protect the object or good from any damage or mishandling, the lease document is created, which, being legally valid, ensures fair play and a correct transaction. Such a document keeps both parties in check from misusing the goods exchanged, and ensures that certain guidelines are followed in case of lease deals. Some of the major advantages and uses of lease deals are as follows:

  • Lease documents are legally valid. They serve as evidence in case of any malpractice or accusation leveled by one party against the other. Since they are ratified by the law and are signed by representatives of both groups, as well as by witnesses, they play a decisive role in any dispute.
  • Lease documents also set the terms and conditions which will govern the agreement. It takes into account the condition of the item to be leased, the duration of lease, the payments to be made and all such factors which make up the lease agreement.
  • Lease documents are also useful in establishing the ground rules of the lease agreement. They are legally valid and hence more credible and authentic than a verbal contract or no contract at all. They consider all aspects of the deal and take into account every contingency.
  • Lease documents also attest to the credibility of the persons involved in the deal. It argues for a more secure transfer and is recognized by the law. In case of any dispute the case will at least receive a hearing.

Thus lease document are extremely crucial and must be framed in an appropriate manner.

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