Lessor And Lessee Examples
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FAQ
A lessee is defined as the entity paying for the use of specific property from a lessor. For example, if a person leases a vehicle from a car dealership, the person using the car is the lessee. Conceptually, the lessee is paying the lessor for the ?right to use? the asset.
For example, suppose you live in a tourist place and can drive well but don't own a car. However, you may take a car on lease from a car owner to earn a living by driving it around as a taxi for tourists. In this case, you are the lessee while the car owner is the lessor. Both lessor and lessee could be an entity too.
A lessee is a person who rents land or property from a lessor. The lessee is also known as the ?tenant? and must uphold specific obligations as defined in the lease agreement and by law. The lease is a legally binding document, and if the lessee violates its terms they could be evicted.
For example, if a car dealership leases a vehicle to someone, the car is the asset. The person renting the car is the lessee and the dealership is the lessor. The lessee pays the dealership, or lessor, for the right to use the vehicle for an agreed-upon amount of time.
For example, in the case of real estate or a car, the lessor is the property owner or automobile dealer respectively; in the case of a trademark or brand name, the lessor is the company that owns it and has conferred the right to use the trademark or brand name to a franchisee.
