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A lease is a contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset.<ref>Stickney and Weil 2007 p. 791 (Glossary of Financial Accounting: An Intro. to Concepts, Methods, and Use 12e).</ref>

Broadly put, a lease agreement is a contract between two parties, the lessor and the lessee. The lessor is the legal owner of the asset, the lessee obtains the right to use the asset in return for rental payments.<ref>http://www.accaglobal.com/sg/en/student/acca-qual-student-journey/qual-resource/acca-qualification/f7/technical-articles/accounting-for-leases.html</ref>

The narrower term rental agreement can be used to describe a lease in which the asset is tangible property.<ref>34 Am. Jur. 2d Federal Taxation ¶ 16762 Section 467 rental agreements defined: “A rental agreement includes any written or oral agreement that provides for the use of tangible property and is treated as a lease for federal income tax purposes."</ref> Language used is that the user rents the land or goods let or rented out by the owner. The verb to lease is less precise because it can refer to either of these actions.<ref>It is possible to rent in such a way many things such as domestic animals, electrical appliances, handbags and jewelry."If you want it, rent it ... from a 'must have' handbag to an Aston Martin", The Observer, 2009-01-04. Retrieved on 2009-09-09.</ref> Examples of a lease for intangible property are use of a computer program (similar to a license, but with different provisions), or use of a radio frequency (such as a contract with a cell-phone provider).

The term rental agreement is also sometimes used to describe a periodic lease agreement (most often a month-to-month lease) internationally and in some regions of the United States.<ref>http://www.dca.ca.gov/publications/landlordbook/before-rent.shtml</ref>


Leasing sections
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