A Leasing Contract is an agreement between a lessor (the party providing the asset) and a lessee (the party renting the asset). It outlines the terms through which the lessee can use the asset, such as duration of the lease and payment amount. The lessor retains its ownership rights, while the lessee pays regular installments to use the asset. Both parties must adhere to the agreement’s conditions and responsibilities, so it’s important that all clauses are clearly outlined in writing. Leasing Contracts enable businesses to gain access to assets they would otherwise not be able to afford, while also offering a fixed rate of return to the lessors.