A lease is a contract between two (or more) parties to enter into a lease. The contract contractually obliges the parties concerned to conclude the lease agreement either on a fixed date in the future or after the fulfilment of the conditions set out in the contract. To avoid any dispute at the time of completion of the lease, it is preferable to agree on the form of the lease and annex it to the contract. The most common type of rental agreement that our customers need is in the expected form of the second situation above. While the parties usually enter into the agreement with the full intention of entering into the final lease agreement, unforeseen circumstances may arise, affecting the desire or ability of the parties to proceed to completion. If the parties are willing to enter into the lease immediately, no lease would be required. However, if the lease is to be concluded in about six months, the parties may wish to enter into an agreement earlier to ensure that the lease will be concluded if necessary (and that the other party will not resign unexpectedly). A rental agreement would be necessary even if certain conditions must be met before the conclusion of the rental agreement, for example.B. if either the lessor or the tenant has agreed to carry out work on the premises before the conclusion of the lease. Given the considerable investments (both in terms of time and money) involved in taking over, building or equipping commercial or retail buildings before a lease is handed over, it is important that landlords and tenants accept their requirements. This takes the form of a lease agreement, which is a binding agreement between a lessor and a potential tenant in order to grant or accept a lease in the future. Most people are aware that a lease offers the tenant a lease term which is a legal right to exclusive ownership of the land from a current or future date. In contrast, a lease is a contract that grants a lease in the future without actually granting ownership rights to the proposed tenant.
A lease usually binds both parties, but sometimes a contract can only bind one of them, as in the case of an option to renew a lease that may or may not be exercised by the tenant. There are a large number of disputes regarding leases, particularly when premises are “built for purposes”. . . .