Rental Agreement

Rental Agreement

Introduction

The concept of renting pertains to a union also called hiring. According to this agreement, a temporary service, property or goods is owned by the other people and the payment is made. Many people rent instead of making a pure purchase. This is because, in numerous jurisdictions (including Spain, India, Australia, United States and the United Kingdom) the rent that is utilized in a business or trade is tax deductible, while majority of the legal boundaries do not levy tax on a dwelling. One of the other reasons that people prefer to rent is their financial inadequacy, in which cases, they are unable to buy the house and so rent it. They might not be willing to make the payment needed by the ownership and would constitute for the smaller payments over a particular time period.

The renting concept reduces or eliminates the financial risk which may occur because of transaction costs and depreciation, particularly in the cases of real estate that may be required for a short time period. It is also used when something is only required for a particular time or on temporary basis, or may not be in proximity for use. Moreover, the action of renting keeps the debt off-balance-sheet which might be a burden on the company's balance sheet if the property had to be bought. Finally, in order to use the products in a more efficient manner, the usage of renting may prove to be better for the environment.

The current paper discusses the concept of rental agreement along with its legal issues, ethical considerations and the impact of legal technology on the issues. The conditions and obligations of the rental agreement are elaborated along with the involvement of internet portal and mobile technology in the legal departments. There is no doubt that the usage of ethical consideration and web forum in the legal capacity has reached heights.

Renting Agreement

A rental agreement may make the lessee or the renter the owner of the asset, or property, when the rental period ends. The consent lies with the renters' opinion regarding the payment of nominal fees. All these arrangements may be known as follows:

Rent-to-own is a term that is utilized in the United States for the purpose of rental of appliances or furniture. It is also used for the transactions of the property where the lessee is provided an alternative to make the purchase of property at a particular time in future at a fixed price. These arrangements may be known as the lease-to-own, lease-option, or lease to purchase option.

Hire purchase is an agreement that is used for purchasing cars, business equipment and other consumer equipments in the United Kingdom and various other countries across the world. It may also use the term lease-purchase (LawHelpNewMexico, 2012).

Closed-end leasing is used in Canada and United States for the purpose of leasing cars. In this agreement, unlike that of the terms of hire purchase, it is at the residual value that the assets are sold at the term ...