What Is a Lease?

Legally binding documents are not just written for the sake of formality. They are essential in various business processes, especially when it involves more than two parties. In the absence of a written contract or agreement, there is no proof that a negotiation exists. Thus, making it easier for either party to break the rules. One example of a legally binding contract is a lease. This document sets forth the legal obligations of the lessee and lessor about leasing a property. Proprietors write a lease whenever they rent out a building, vehicle, property, land, and more, to another entity for a specific time frame.

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