An Essential Element in a Lease Agreement Is That the

question 31

Multiple Choice

An essential element in a lease agreement is that the

• A) lessee transfers less than the total interest in the property.
• B) lessor transfers less than the total interest in the property.
• C) lease must contain a bargain purchase option.
• D) rental (lease) payments must be constant for the duration of the lease.

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Definitions:

Strict Product Liability

A doctrine in tort law that makes manufacturers, distributors, or sellers liable for any defects in the products they market, irrespective of negligence.

Manufacturer

An individual or company that makes goods for sale using raw materials and parts, typically in a large-scale operation involving machinery.

Seller

A seller or company presenting products or services for acquisition to buyers or other enterprises.

Mortgage Loan

A loan used to purchase property or real estate, which is then used as collateral for the loan.