Which document outlines the terms of the lease transaction?

The lease agreement is the key document that outlines the terms of the lease transaction. It serves as a legally binding contract between the lessor (the party providing the asset) and the lessee (the party receiving the asset), detailing all essential aspects such as the duration of the lease, the payment schedule, the responsibilities of each party, conditions for termination, and any other specific terms pertinent to the leasing arrangement.

A bill of sale pertains to the transfer of ownership of an asset, which is not applicable in a leasing context, as leasing does not transfer ownership but rather grants a right to use the asset for a specified period. A security agreement is related to securing a loan with collateral and does not cover lease terms. A purchase order is used in the context of buying goods and does not outline the specifics of a leasing arrangement.

Thus, the lease agreement is integral for delineating the expectations and obligations of both parties involved in a leasing transaction.