Leasing is a very important component of credit and finance. It is used to meet the financial needs of the individuals as well as business entities.
What is leasing?
Leasing is a type of financial agreement according to which an owner will rent out his or her asset to another person or company in return for a monthly lease rental. At the completion of the lease period, the asset will be returned to the owner of the asset. It is very useful for those individuals and companies who do not have sufficient funds to buy new assets. So they can get those required assets at a much lower rental payment and use the asset according to their requirement. In almost all cases leasing is a legal contractual agreement. Thus it is only practiced once there is some legal documentation executed.
Need for a Lease Contract Template
A lease contract template is designed and produced to provide protection and security to the rights of both the asset owner and the rental participant. In any type of deal where things of value or money have involved the need for a legal contract is necessary. Such a legal contract is known as a lease contract. In the absence of this document, the tenant might breach the terms and conditions of the contractor might even misuse the asset leased to him or her. The owner might also indulge in fraudulent activities by misquoting the rental payments or embezzling the due rights of the parties.
Format: MS Word