A contract lease agreement is a formally drafted document which is made in the case when a person or party agrees to lease out a property or an equipment to another person or party. In such a case, the party which owns the property or equipment is known as the lessor and the party which rents the equipment or property is known as the lessee. The contract period within which the contract remains effective is known as the effective length of the contract. A contract lease agreement is a legally binding or enforceable document which can result in legal implications if any of the parties are to violate the terms.
Contract lease agreement must consist of the personal details of both the parties including the names, addresses, contact numbers and email addresses. The document must also give the address of the property which is leased or the details of the equipment which is to be leased out. The document must also consist of the section of the terms and conditions where the roles and responsibilities of both the parties are defined clearly for their future reference. Such an agreement also mentions the exact amount of lease payment and the date on which it is to be paid.