Future Business Leaders of America (FBLA) Business Law Practice Exam

What is a lease in legal terms?

1. A written agreement for the sale of property

2. A contract between a tenant and a landlord

3. A document transferring ownership of a property

4. A temporary right to use someone else’s property

The correct answer is: A contract between a tenant and a landlord

A lease, in legal terms, is specifically a contract between a tenant and a landlord that outlines the rights and responsibilities of both parties concerning the rental of property. This agreement typically includes essential details such as the duration of the lease, the amount of rent to be paid, and any rules governing the use of the property. The lease serves to formalize the relationship between the two parties, ensuring that the tenant has the right to occupy the property in exchange for rent, while the landlord retains ownership and the right to enforce the terms of the lease. This arrangement is crucial in real estate and property law, providing clear legal guidance for both tenants and landlords. Other options, while related to property, do not define a lease accurately. The first option refers to a sale agreement, which is distinct from the rental arrangement a lease entails. The third option describes a deed, a document used in transferring ownership, rather than granting temporary rights. The fourth option touches upon the concept of use but lacks the critical aspect of it being governed by a formal agreement between the tenant and landlord. Thus, the definition of a lease as a contract between a tenant and a landlord is the most accurate representation of this legal instrument.