Lease

A lease is a contractual agreement by which one party conveys an estate in a property to another party, for a certain limited period of time, subject to various conditions, in exchange for something of value, but still retains ownership.

Credit- apartmentguild.com

It is a contract for the exclusive possession and profit of landed property for some definite period.When a lease is formed, the property owner is called the lessor, and the user of the property is called the lessee.In a lease, the consideration flowing from the lessor to the lessee is the demised premises. The consideration paid by the lessee is rent and the observance of any condition or covenant in the lease. The title to the land is not conveyed, only the use and occupation of the property is given out ; the property reverts back to the lessor after the expiration of the term.
A lease is created when a property owner (the offeror) makes an offer to another party (the offeree), and the offeree accepts the offer. The offer must authorize the offeree to possess and use property owned by the offeror for a certain period of time without gaining ownership. A lease must also contain consideration, which means that the offeree must give something of value to the offeror. Consideration usually consists of money, but other things of value may be given to the offeror. Finally, the offeror must deliver the property to the offeree or make the property available to the offeree.
Generally, a lease may be written or oral, but a lease for certain types of property must be in writing and signed by both parties. For example, if a lessee seeks to lease real property (land or buildings) for more than one year, the lease must be in writing. Some leases must be written, signed, and recorded in a registry of deeds. Such leases usually concern real property that will be leased for a period of more than three years.
A lease term begins when the lessee receives a copy of the lease. However, the lease need not be given directly to the lessee; it is enough that the lessee knows that the lease is in the hands of a third person acting on behalf of the lessee. A lease may also take effect when the lessee assumes control over the property.
One controversial lease is the rent-to-own lease. Under such a lease, the lessee pays a certain amount of money for a certain period of time, and at the end of the period, the lessee gains full ownership of the leased item. Rent-to-own leases are often associated with consumer goods such as televisions, stereos, appliances, and vehicles. Many rent-to-own leases provide that the lessor may regain possession and ownership of the property if the lessee defaults. Such clauses have been found to be unconscionable if they are exercised after the lessee has paid more than the market value of the leased item.
For example, assume that a party leases a television worth #3000. The lease obliges the lessee to make payments of #500 a month for one year. At the end of the lease period, the lessee will have paid #6000 for the television. The amount of the total payment may not be unconscionable, because the lessee gains a television without making one large payment. However, if the lessee defaults after making #5500 in payments, and the lessor repossesses the television, a court may find that the lessor's actions are unconscionable and order that the television be returned to the lessee.

• Enforcement is easier when the covenants are expressly written.

• Granting of an Order of Specific Performance is much easier rather than relying on the doctrine of part performance to enforce the lease. Part performance might fail due to the fact that it's a discretionary remedy, or there maybe impossibility of performance as well as many other reasons.

A lease contract can involve any property that is not illegal to own. Common lease contracts include agreements for leasing real estate and apartments, manufacturing and farming equipment, and consumer goods such as automobiles, televisions, stereos, and appliances.

An assignment differs from a sublease. In a sublease the original lessee gives temporary rights under the lease to a third party, but the third party does not assume a contractual relationship with the lessor. The original lessee retains the same rights and obligations under the lease, and forms a second contractual relationship with the sublessee. Like assignments, subleases generally are valid unless they are prohibited by the lessor.If a lessor defaults on his obligations under the lease, the lessee may sue the lessor for damages. The measure of damages can vary.

Leases created for a term less than 3 years are not required to be by deed, in such a case it should be signed, sealed and delivered and to take effect as a deed, but could simply be oral (parol leases). Although, it's essential that a lease agreement should always be in writing. The merits of. A written lease includes :

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