Operating Leases Are Contractual Agreements Where the Lessor Owns the Asset

question 122

True/False

Operating leases are contractual agreements where the lessor owns the asset and the lessee simply uses the asset temporarily.

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Definitions:

Delivery Contract

An agreement specifying the terms under which goods will be delivered from a seller to a buyer, including timing and location.

Common Carrier's Hands

In transportation law, common carrier's hands refer to the possession and responsibility of goods by a common carrier, who transports goods for the public under regulatory guidelines.

Ambiguous Contract

A contractual agreement that is unclear or can be understood in more than one way due to vague or conflicting terms.

Sale-Or-Return

A sales agreement that allows the buyer to sell the goods and return any unsold items back to the supplier.