Basically, leasing itself is the act of the owner of the property to let another person to use that property for a pre-agreed upon period of time in exchange for a pre-agreed upon amount of compensation. It may apply to land, or it may apply to movable property – in this case, we are interested in equipment leasing, or leasing of movable equipment. The person who really owns the movable equipment is called the lessor while the person who agrees to the equipment leasing terms of the lessor is called the lessee.
Under an equipment leasing contract, the lessee will gain exclusive rights to use the movable equipment in question for the pre-agreed upon period of time provided this lessee keeps paying the pre-agreed upon amount of compensation to the lessor.
Equipment leasing may fall into two categories. First, the lessor may grant the lessee the rights to use the movable equipment for that pre-agreed upon period of time only. At termination of the contract or when the period of time they agreed upon has come to a close, the lessee has to return the movable equipment to the owner or lessor. The second type of equipment leasing arrangement allows the lessee to make payments while using the movable equipment.
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