What is a "sublease"?

A "sublease" refers to an arrangement in which the original lessee, who is the party leasing the asset, leases that same asset to another party while retaining certain rights and obligations under the original lease. This means that the original lessee remains responsible for ensuring that the terms of the original lease are met, while the sublessee is granted temporary use of the asset.

In a sublease, the relationship between the original lessee and the sublessee does not alter the original lease's terms, which typically remain intact. This arrangement allows the original lessee to generate income from the asset without surrendering their primary leasehold rights. The sublessee effectively enters into a new agreement with the original lessee but does not have a direct relationship with the lessor, which is the party that originally leased the asset to the original lessee.

The other options detail different concepts that do not accurately describe a sublease. A sublease does not involve the sale of the property or complete replacement of the lease agreement, nor does it grant control of the asset to the lessor. Understanding the sublease mechanism is crucial in leasing law, as it highlights the complexity of lease agreements and the rights of lessees.