Unit 6: Lease Contract

UNIT 6
LEASE CONTRACT
Definition:
1. It is an Agreement by which one party, called Lessor is bound by to assure to the other
party, called Lessee the total/partial/temporary usage of an asset in exchange for an amount
of money/rent.
How do we distinguish between Cont!"t of S!#e !nd Le!se Agee$ent%
By leasing it is transferred only the right to use and not the ownership of that asset.
&. A residential Lease Agreement, also nown as a !ouse Lease Agreemnet, or "esidential
"ental #ontract is a form used by landlords to rent out real estate based on the fact that
someone will be li$ing there.
'. It is a formal document that identifies the lessor, lessee and the leased asset or property% it
states lease term and fee &rent', and detailed terms and conditions of the lease agreement.
LA is a bilateral contract ( there are reciprocal obligations of both parties. )he lessor has to
assure the usage of the leased asset and the Lessee has to pay the price of the leasing.
LA is by onerous title ( both parties ha$e a patrimonial interest.
LA is a consensual contract ( it is executed by the mutual agreement of both parties.
LA is a call*off agreement ( the Lessor warrants the asset usage until the contract is
terminated% the price is calculated according to the usage duration% this duration is stipulated
according to the parties will &it can be determined or non*determined'.
(h!t does ! Le!se Agee$ent "ont!in+
Any agreement in$ol$ing a piece of property should always be in writing. It should include+
*a description of the property, including the address of the property%
*the type of property such as a house or apartment etc.%
*who the parties are, this will generally be the owner of the property, also nown as the lessor/
landlord and the tenant, also nown as the lessee/ renter%
*the term of the lease, this will indicate how long the lease is for, what day the lease begins,
and what day the lease entered into ends%
*the rental payments &it should be put down in writing', how much the rent is due, how
often &weely, monthly, anually', and when it is due.
,any other pro$isions may be included. It is important to put the terms of the Lease
Agreement so that should any problems arise, all the parties are clear on their responsibilities,
and where the fault lies. If the parties are unable to resol$e their dispute, and go to court, a
court will be able to interpret a written agreement and decide on the most fair solution.
A "esidential Lease form can be sometimes called by different names and can co$er many
types of leses such as !ouse Leases, Apartment Lease, #ondo Lease and e$en "oom Lease.
A lease is a contract for the possession and profits of lands and tenements on one side and a
recompense of rent or other income on the other or else it is a con$eyance of lands and
tenements to a person for life or years or at will, in consideration of a return of rent or other
recompense.
Its )!ts:
A lease in writing by deed indented consists of following+ -. the premises% .. the habendum
&determines the extent of the interest/ estate granted'% /. the tenendum &used to express the
tenure by which the estate granted was holden'% 0. the reddendum &)he grantor reser$es smth.
new to himself out of that which he granted before'% 1. the co$enants% 2. the conditions% 3. the
warranty.
The fo$!#ities the #!w e*uies.
A lease may be a$oided+ -. Because it is not sufficiently formal, and .. Because of some
matter which has arisen since its deli$ery.
Leases may be in writting or not in writting. Lease in writting are either by deed or without
deed. A deed is a writting sealed and deli$ered by the parties, so that a lease under seal is a
lease by deed. )he Lease must be deli$ered either by the parties themsel$es or their attorneys,
which deli$ery is expressed in the attestation sealed and deli$ered in the presence of us.
+o,isions:
-. 4b5ect of the #ontract &)he 6ub5ect ,atter'%
.. 7uration of the #ontract%
/. )he Lessor8s "ights and 4bligations%
0. )he Lessee8s "ights and 4bligations%
1. )imes and )erms of 7eli$ery%
2. "esidual 9alue/ #onsideration%
3. #laims and :enalties%
;. <orce ,a5eure%
=. Arbitration%
->. 4ther terms.
The -!#idit. Conditions of the Le!se A:
-. #apacity of the parties%
.. 6ub5ect ,Atter%
/. )he ?ffects of the Lease A &the rights and obligations of the Lessor/Lesse'.
:7< to @ord

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