In a lease agreement, what are the two main parties involved?

In a lease agreement, the two main parties involved are the lessor and the lessee. The lessor is the party that owns the asset and grants the lease to the lessee, who is the party that receives the right to use the asset for a specified period in exchange for payment. This arrangement allows the lessee to utilize the asset without the need to purchase it outright, while the lessor retains ownership of the asset throughout the lease term.

The lessor and lessee relationship is foundational to leasing agreements, as it outlines the rights and obligations of each party, including payment terms, duration of the lease, and maintenance responsibilities, among other critical elements. This understanding is vital for anyone involved in leasing to ensure all parties fulfill their roles effectively within the contractual agreement.

In contrast, the seller and buyer, borrower and lender, and owner and manager relationships apply to different contexts and types of agreements but do not pertain directly to lease agreements in the way that lessor and lessee do.