Lakhasly

The ownership of the underlying asset is transferred to the lessee at the end of the lease term.The lessee has a purchase option to purchase the leased asset, and is reasonably certain that he will use

it.

The lease term covers the greater part of the remaining economic life of the underlying asset.The present value of the sum of all lease payments and any residual value guaranteed by the lessee

matches or exceeds the fair value of the underlying asset.In terms of its existence or its appointment, as for the term, it enjoys its privacy

because the lease contract is one of the continuous contracts, as the term extends continuously all the

obligations and rights of the two parties to the contract.The landlord may tell you orally that they will stop enforcing that part of

the lease, but you should not rely on this type of promise.

The ownership of the underlying asset is transferred to the lessee at the end of the lease term.

The lessee has a purchase option to purchase the leased asset, and is reasonably certain that he will use

it.

The lease term covers the greater part of the remaining economic life of the underlying asset. This is

considered to be 75% or more of the remaining economic life of the underlying asset.

The present value of the sum of all lease payments and any residual value guaranteed by the lessee

matches or exceeds the fair value of the underlying asset.

The asset is so specialized that it has no alternative use to the lessor after the lease term.

­ Time period of the lease

The term is the most important pillar in the lease contract, because the other pillars are very similar to the

rest of the contracts. In terms of its existence or its appointment, as for the term, it enjoys its privacy

because the lease contract is one of the continuous contracts, as the term extends continuously all the

obligations and rights of the two parties to the contract. The two parties shall set the starting date of the

contract in order to calculate its term if it is a fixed term.

­ Permission for physical changes to the property if needed

As your relationship with your landlord unfolds, you may decide that certain terms in your lease or rental

agreement need to be changed. The landlord may tell you orally that they will stop enforcing that part of

the lease, but you should not rely on this type of promise. You never know if the building will change

ownership or if the landlord will simply change their mind, and an oral change to a written agreement is

hard to enforce. Instead, you should make the change to the lease in writing so that both sides have a

record of it.