Lessee gains control of the given property or objects for a specific amount of time after he or she has signed a lease deal. It does not give the ownership rights to the lessee.
There are certain terms that are always placed on the deal. It is generally about the purpose of use, the time period for which it will be used for and the price or rent that will be paid against it.
In certain cases, for example for machinery or a vehicle, it is also determined that for how much the lessee can use the given object. In vehicles, it is determined on the basis of mileage. Violation of the terms generally leads to penalties or even cancellation of the lease.
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Lessor is the owner of the property or the object that is being leased. The person or organisation who owns the given property is in a better bargaining position and can get their specific terms put in the agreement.
They continue to own the property and get it back at the end of the lease. They have certain allowances to make which they must do otherwise they themselves can be held accountable in the court of law. They have the right to determine how much usage they allow on their property and how it should be maintained by the other party.
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