TRUE LEASE Meaning and
Definition
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A true lease, also known as a financial or operating lease, refers to a contractual agreement between a lessor (owner) and a lessee (user) for the use of a specific asset or property. In this type of lease, the lessee does not acquire ownership rights of the asset but gains temporary possession and use for the agreed-upon lease term.
Within a true lease, the lessor retains the ownership and economic risks associated with the asset, such as the potential decline in value or obsolescence. The lessee, on the other hand, pays periodic lease payments for the allotted time without any obligation or option to purchase the asset at the lease's conclusion. This differentiates it from a capital lease, where the lessee may have the right to acquire ownership.
True leases are commonly utilized for both tangible and intangible assets, including real estate properties, vehicles, machinery, equipment, software, and intellectual property. They offer businesses and individuals the flexibility to access and utilize assets without the need for a significant upfront capital investment. Moreover, true leases may provide potential tax benefits, as lease payments can typically be deducted as operating expenses.
The specifics of a true lease are typically outlined in a lease agreement, including the terms and conditions, lease term, payment amount, liability for maintenance and repairs, insurance requirements, and any restrictions or limitations on the lessee's use of the asset.
Common Misspellings for TRUE LEASE
- rrue lease
- frue lease
- grue lease
- yrue lease
- 6rue lease
- 5rue lease
- teue lease
- tdue lease
- tfue lease
- ttue lease
- t5ue lease
- t4ue lease
- trye lease
- trhe lease
- trje lease
- trie lease
- tr8e lease
- tr7e lease
- truw lease
- trus lease
Etymology of TRUE LEASE
The word "true lease" is not derived from any specific etymology as it is a compound term made up of two separate words.
"True" originates from the Old English word "trēowe", which means faithful, loyal, or genuine. Over time, it has retained a similar meaning in English, often used to describe something as being in accordance with facts or reality.
"Lease" comes from the Middle English word "les", which has its roots in Anglo-Norman and Old French. It refers to a contractual agreement granting someone the right to use or occupy property for a specific period in exchange for payment.
When these two words are combined, "true lease" refers to a genuine, valid, or legally recognized rental agreement for the use of property.
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