A lease is a legally enforceable contract which defines the relationship between one party ("Lessor") and another party ("Lessee"), giving the Lessee the exclusive right to use and possess the Lessor’s equipment for a specific period of time. The Lessee is responsible for all ancillary costs associated with the use and upkeep of the equipment. Taxes and insurance are also the Lessee’s responsibility during the term of the lease.
Equipment leasing companies. The lease contract requires the Lessee to make periodic payments, or rentals, to the Lessor for the use of the equipment. At the end of the lease term, the Lessee may have the option to purchase the equipment based upon a predetermined purchase option which can be as little as $1.00.
