Date: 13 April, 2021
by Dikshita Singla, UILS, Panjab University
Lease means when a person rents his property to another through a means of contract in return for a payment for a certain period. e.g. A leases his house to B for 6 months for periodic payment of Rs. 12000 per month.
The term “lease” is defined under Section 105 of The Transfer of Property Act, 1882 -
“A lease of immovable property is a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specific occasions to the transferor by the transferee, who accepts the transfer on such terms”.
ESSENTIALS OF A VALID LEASE
Competent Parties- To constitute a valid lease both the lessor and the lessee must be competent parties. For both the parties to be competent they must be:
The lessee must have attained the age of eighteen years.
The lessor must have the rightful authority to make the lease.
Both the parties must be of sane mind to constitute a valid lease agreement.
Subject matter involved- The subject matter to be leased must be an immovable property like a flat, house or commercial space. Movable property cannot be leased.