Lessee example sentences

A lease is a contractual agreement whereby the owner of an asset (lessor) grants the right to use the asset to the other party (lessee).The owner of the assets is called the 'lessor' while the party that uses the assets is known as the 'lessee' (see Box A).The lessee pays a fixed periodic amount called lease rental to the lessor for the use of the asset.For example, it may not allow the lessee to make any alteration or modification in the asset; The normal business operations may be affected in case the lease is not renewed; It may result in higher payout obligation in case the equipment is not found useful and the lessee opts for premature termination of the lease agreement; and The lessee never becomes the owner of the asset.