Leasing refers to the agreement, which is most often concluded between two parties, in which a party wishes to buy an expensive asset by paying the amount in different tranches, and so it is a kind of agreement in which the buyer agrees to pay a certain amount (known as a down payment) to the supplier at the time of purchase and the balance in different tranches as well as the interest that is calculated with a certain percentage. In the absence of specific legislation, leasing transactions are governed by the provisions of the Indian Contract Act and the Property Sale Act. Leasing means a transaction in which goods are bought and sold on the terms of: ii. The amount of funds related to the purchase of rental funds is very small and only small types of assets such as office equipment, automobiles, etc., are acquired through them. 2. The ownership of the goods remains in the hands of the owner: until all payments are paid in full, the owner of the goods still has ownership rights over the goods. A rental agreement grants the tenant only the right of ownership. Therefore, the tenant cannot continue the goods to third parties without the landlord`s consent. Rent-to-own agreements are also excluded from the truth law, as they are considered leases rather than an extension of credit.

If the tenant does not pay the payment, the landlord can recover the property. No matter what the owner does with the property, there is no concern for the tenant. In the case of Williams vs. UAC Ltd[2], the court found that when it recovers from the sale of the goods an amount exceeding the debts earned by the tenant, the landlord is not required to return the balance to the tenant. A lease is roughly similar to the concept of an asset lease that gives the buyer a fair chance to purchase the item whenever he can, as long as the agreement is in effect. Similarly, the rental purchase provides an advantage to the buyer by granting him less credits, by diverting the cost of expensive items that he could not have afforded over a certain period of time. However, the buyer is not entitled to be the owner of the item, unless he has paid the entire item, which means that he is not bound to the extension of the credit. Leasing is a method of buying or financing capital goods in which the goods are almost immediately accessible for use, but the payment is made in a smaller part over an agreed period. The property is transferred only after payment of all payments. From a technical point of view, it is an agreement between the purchaser (or user) of the asset and the financing company, in which the financing company acquires the asset on behalf of the buyer and the buyer has used it for commercial purposes and the rem has the financing company reimbursed in small installments, called rental fees.

The use of leases as a type of off-balance sheet financing is strongly discouraged and does not conform to general accounting principles (GAAP). Hire-Purchase is a British term for “rent for clean” or “rat temperature plan” in different countries. Owning property through leasing and purchasing allows businesses to improve their performance. This system is not only beneficial to the tenant, it is also the most efficient and safest form of credit sales for the current owner of the asset. iv) If the amount paid by the tenant until the time the goods are withdrawn or the value of the goods on the day of the withdrawal of the goods exceeds the total price of the tenancy, the overpayment paid by the tenant is returned by the owner of the goods to the tenant.