Lease Rentals

Lease Rentals The consideration that the lessee pays to the lessor for the lease transaction in the lease rental. Lease rentals are structured so as to compensate (in the form of depreciation) the lessor for the investment made in the asset, and for expenses like interest on the investment, repairs and servicing charges home by the lessor over the lease period. Modes or Terminating the Lease. At the end of the

Ownership Separated from User

Ownership Separated from User The essence of a lease financing contract is that during the lease tenure, ownership of the assets vests with the lessor and its use is allowed to the lessor and its use is allowed to the lessee. On the expiry of the lease tenure, the asset revert to the lessor. Term of Lease The term of lease is the period for which the agreement of lease remain to operation. Every lease sho


Assets The assets, property or equipment to be leased is the subject matter of a lease financing contract. The asset may be an automobile, plant and machinery, equipment, land and building factory a running business, an aircraft and so on. The asset must, however, be of the choice, suitable for his business needs.

Essential Elements

Essential Elements: The essential elements of leasing are the following: Parties to the Contact There are essentially two parties to a contract of lease financing, namely the owner and the user, called the lessor and the lessee, respectively. Lessors as well as lessees may be individuals, partnerships, joint stock companies, corporations or financial institutions. Sometimes there may be joint lessors or joint le

Concept and Classification

Concept and Classification The conceptual aspect of leasing include its meaning and essential elements. Meaning Conceptually, a lease may be defined as a contractual arrangement transaction in which a party owning an asset equipment (lessor) provides the asset for use to another transfer the Fight o use the equipment to the user (lessee), over certain for an agreed period of time for consideration in form of in


LEASING FINANCE This section explains the theoretical framework of leasing in terms of concept and classification of leasing and its significance and limitation. It also discusses the Financial evaluation of leasing from the viewpoint of both the lessee, and the lessor. Finance-Assignments.comInstructions Feel free to send us an inquiry, we reply back real quick. Or directly email us at order@finance-assignme