History of Leasing Agreements

Leasing property is an old business practice that has survived to present times. Leasing agreements, also known as contract of rent, leasing contract and agreement of lease, could be applied to real property and personal property. In some areas, real property is also referred to as immovable property while personal property is referred to as movable property. The terms and conditions in the lease agreement depend on what kind of property you are leasing and what you have agreed upon with the other party.

In 1984, a group of archaeologists discovered a 4000 year old clay tablet which is believed to have existed in the city of Ur. This tablet dates back to 2010 BC when priests leased land and farming equipment to the people. During this time, the civilization was led by priests and not elected officials. Apart from them, ancient Roman, Greek and Mesopotamian civilizations engaged in the practice of leasing property.

This practice was and continues to be a form of accumulating capital through rent. Rent is the money or goods paid in exchange for the use of the land or property for a certain period of time. In the ancient years, ships were leased as transportation. This is why the saying "pay come hell or high water" became a frequent expression in lease agreements.

Lease agreements, like any contract could be expressed or implied. An express lease agreement is either orally communicated or in written form. It is considered as express because both parties are made aware of the terms of agreement. On the other hand, an implied lease agreement could mean that it is mandated by law or by custom. Both however, require that there s consent previous to the lease.

In the US, horses, wagons and stables were the first items recorded to be leased to others. Normally, in the leasing agreements of personal property, the lessor is not required to pay for the property or equipment if destroyed or lost because of fortuitous events and without bad faith. But this provision has been altered several times in law to protect the owner of the property. In some countries, this stipulation applies only to specific things and not general things. Specific things are those that can be ascertained while general things belong to a class and cannot be differentiated from another belonging to the same class.