Asked by Kevin Huynh on May 07, 2024
Verified
A lease is legally a/an ___________ contract.
A) mutually performed
B) executed
C) executory
D) unilateral
Executory Contract
A contract under which both parties to the agreement have unperformed obligations that remain to be fulfilled.
Lease
A contractual arrangement in which a lessee agrees to pay the lessor for the use of an asset for a specified period of time.
Legal
Pertaining to the law or the legal system, encompassing various legal matters, processes, and institutions.
- Recognize the variance between capital and operating leases when viewed from the perspectives of the lessee and the lessor.
Verified Answer
ZK
Zybrea KnightMay 08, 2024
Final Answer :
C
Explanation :
A lease is an executory contract because it is a contract that has not been fully performed by both parties at the time of signing. The lessee has not yet paid the full rent and the lessor has not yet provided full access to the property.
Learning Objectives
- Recognize the variance between capital and operating leases when viewed from the perspectives of the lessee and the lessor.
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