What is an Auto Lease

By | August 30, 2011

An auto lease is a document which outlines the terms and conditions that govern the lease of an automobile or a vehicle for a certain period of time by one individual or organization called the lessor, to another, called the lessee. It is a legal document which must be written using the correct framework and terminology. Any mistake that may creep into the auto lease can be detrimental to the value of the lease agreement as a whole, as well as being gross injustice against the aggrieved party. An auto lease must have certain crucial details regarding the transaction incorporated into it. Some of these are as follows:

  • Details, including name and address of both lessor and lessee.
  • Duration of the auto lease.
  • Date of commencement and date of termination must be clearly mentioned. The auto lease stops being effective after the date of termination.
  • Terms and conditions which will govern the auto lease. In case of breach of terms and clauses, penalty can be extracted through legal help.
  • Details of payment like initial security deposit and monthly rental.
  • Details about the object of transaction or the automobile itself, like model number, license plate number, details of insurance and papers.
  • Signatures of the lessor, lessee, witnesses and advocate which will ratify the document and give it credibility as well as authorization in the legal sense of the term

Thus, an auto lease must be carefully framed by professionals who are well versed with the art of constructing a watertight legal lease document without loopholes. It should be written in a crisp and business like tone, emphasizing clarity without compromising on courtesy. If necessary, it must be ratified also by a public notary. An auto lease smoothens the temporary exchange of an automobile between two entities, and it thus must be given the respect it deserves.

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