1) A contract of commercial nature between the lessor (owner) and the lessee (user);
2) The contract should provide for periodical payment of rentals for using the
asset for a fixed term by the lessee;
3) On the
expiry of the lease term the lease should return the asset to the owner or dispose it
in the manner desired by the owner.
4) Generally two parties are
involved in a lease agreement, they are- a) Lessor; b) Lessee;