A Lease Where the Lessee Can Purchase the Asset at the Minimum

question 44

Multiple Choice

A lease where the lessee can purchase the asset at the minimum of its fair market value and a fixed price is called a:

• A)$1.00 out lease.
• B)fixed price lease.
• C)fair market value lease.
• D)fair market value cap lease.

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Definitions:

Unilateral Contract

A contract in which one party makes a promise in exchange for an act by another party.

Bilateral Contract

An agreement between two parties where each party makes a promise to the other, with obligations and benefits on both sides.

Express Contract

A contract in which the terms of the agreement are explicitly stated by the parties, either verbally or in writing.

ESIGN

The Electronic Signatures in Global and National Commerce Act, a federal law that facilitates the use of electronic records and signatures in interstate and foreign commerce.