Common use of Definition of Lease Clause in Contracts

Definition of Lease. A lease is a contract whereby the parties agree that one of them shall let the other party use a thing or collect profits therefrom and the other shall pay a rent for it (Article 421 of the Civil Code). A lease agreement becomes effective when the parties agree on the rental object and the rent. To help the parties hereto clearly understand their stance and relationship in terms of rights and obligations, the party who pays the rent is referred to as the Tenant, and the party who delivers the object for lease is referred to as the Landlord.

Definition of Lease. “A lease is a contract whereby the parties agree that one of them shall let the other party use a thing or collect profits therefrom and the other latter shall pay a rent for it it” (Article 421 of the Civil Code). A lease agreement becomes Contract shall become effective when the both parties agree on the rental leasing object and the rent. To help the parties hereto clearly understand their own stance and mutual relationship in terms of rights and obligations, the party who pays the rent is referred to as “the TenantLessee”, and the party who delivers the object premises for lease is referred to as “the LandlordLessor”.