A lease agreement is a document which outlines the terms and conditions that govern a lease contract. It is usually formed between two individuals, parties, companies or business enterprises to ensure that the agreement in principle between them regarding the lease of an object, or service, can be given legal validity and transparency. This agreement can be of mainly kinds, but apartment or residential lease agreements are most heard of. Apart from residential lease agreements, other kinds of lease agreements can include the following:
This agreement is a legal document, hence it should include the lease clauses which the state government of a particular state in the United States, specify. This ensures that in case of a breach of contract, the case can be recognized and registered under that particular United States tribunal. There are some important points to be considered which can make the perfect lease contract all the more watertight and credible.
- Information regarding the details of the lessee and the lessor must be given. Details of the object to be leased must also be mentioned, like the price of the article, its condition while leasing and so on. Hence, in case of damage to the article, the offending party may be penalized according to the law of the United States.
- All information provided in the lease agreements must be accurate and correct. Since this document will have legal validity, it must be free of inadvertent errors which may, in extreme cases, result in legal prosecution(1) as misinforming the court, or providing false information.
- This agreement must be written by professionals who are familiar with the legal terminology and manner in which lease documents are written. They should be written in conformity with the legal requirements of the country and this is particular important. Hence, a lot of care must be taken while framing or composing this agreement.
Advantages of Lease Agreement
Lease agreements has many advantages in United State. Some of them are as follows:
- It provides transparency to the proceedings of this agreement. It ensures that the law of the land recognizes and ratifies the agreement, and thus it has both archival and documental value.
- In case of any confusion, it can be used to refer to the contentious issue. It thus can be used to ensure that there is no breach of contract(2) which may go unpunished otherwise.