In Leases,who Is Most Likely to Carry the Insurance and Bear

question 52

Multiple Choice

In leases,who is most likely to carry the insurance and bear the cost of maintenance and repairs?

• A)In operating leases,it would be the lessee.
• B)In a finance lease,this is done by the lessor.
• C)In a three-year automobile lease,it would be the lessor.
• D)These are usually the responsibility of the lessor in purchase leases.
• E)In purchase leases,it would be the lessee.

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Definitions:

Implied Authority

Authority of an agent that is not explicitly stated but is assumed to be granted in order to perform duties related to a job or position.

Express Authority

Authority expressly given to an agent or representative, defined explicitly in words or writing.

Apparent Authority

a situation where a person appears to have the authority to act for another, leading a reasonable third party to believe that authority exists.

Real Estate Development

The process of purchasing land, financing real estate deals, building or having buildings constructed, and selling or leasing the finished product to end-users.