Business and Personal Finance Dictionary

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 

• ESSENTIALS OF A VALID LEASE
  
  A lease is a form of contract. To be valid, a lease must meet essentially the same requirements as any other contract: Offer and acceptance—The parties must reach a mutual agreement on all the terms of the contract. Consideration—The lease must be supported by valid consideration. Rent is the normal consideration given for the right to occupy the leased premises. However, the payment of rent is not essential as long as consideration was granted in creating the lease itself, sometimes, for instance, this consideration is labor performed on the property. Because a lease is a contract, it is not subject to subsequent changes in the rent or other terms unless these changes are in writing and executed in the same manner as the original lease. Capacity to contract—The parties must have the legal capacity to contract. Legal objectives—The objectives of the lease must be legal.
  
  Back