Lease

A lease is a legally binding contract between a lessor (the owner of a property or asset) and a lessee (the individual or entity that is granted the right to use the property) for the temporary use of an asset, typically real estate or equipment, for a specified period in exchange for periodic payments. The lease outlines the terms and conditions, including duration, payment terms, responsibilities, and rights of both parties.

Lease meaning with examples

• After searching for a suitable apartment, Maria finally decided to sign a lease for a downtown unit. The lease required her to pay rent monthly and included clauses about maintenance and repairs, which gave her peace of mind. Maria felt comfortable moving in, knowing she had secured her residence for the next year under favorable terms, allowing her to focus on her new job without the stress of housing uncertainty.
• The company decided to lease new office equipment instead of purchasing it outright to manage cash flow more effectively. By entering into a lease agreement, they could spread the payments over time, which helped them preserve capital for other critical business expenses. The lease also included maintenance services, ensuring that the equipment remained in good condition throughout the term of the contract without unexpected costs.
• Jack was looking to open a café and needed to secure a prime location. He found a property suitable for his business and negotiated a lease with the landlord. The lease stipulated a five-year term, with options to renew if the café proved successful. This arrangement provided Jack with the stability he needed to establish his café and potentially expand into other locations in the future.
• As a student, Emily opted to lease a car instead of buying one because she couldn’t afford the upfront costs. The lease agreement was favorable, with low monthly payments and maintenance included. This not only allowed her to commute to college efficiently but also gave her the flexibility to drive a new vehicle without the long-term commitment of ownership, making her university experience enjoyable and convenient.
• When the local farmers' market expanded, they needed additional space for vendors. The organizers decided to lease a nearby lot for the season. This lease facilitated growth by providing a larger area for sellers without the costs associated with purchasing property. The arrangement benefited the community by increasing the variety of goods available and providing a thriving marketplace that brought local entrepreneurs together.