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21 Cards in this Set
- Front
- Back
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Lease
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An arrangement where the owner of property allows another person to have possession and use of the property for a stipulated period in return for the payment of rent
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Lessor
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The owner of the leased property
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Lessee
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The person who takes possession of the leased property
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Hire-purchase
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An agreement to lease an item of property with an option for the lessee to purchase it at the end of the stipulated term
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Operating lease
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A lease under which there is no intention to transfer ownership
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Purchase lease
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A lease whereby ownership is intended to change hands at the end of the lease term
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Security lease
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A purchase lease in which the lessor provide the credit
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Finance lease
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An arrangement where a third person provides credit financing, becomes the owner of the property, and leases it to the lessee
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Sale-and-lease-back
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A transaction in which the owner of property sells it and immediately leases it back from the new owner
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What are the terms of a lease contract? What does a lease contract normally state?
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- The duration of the lease
- The rent payable - The party responsible for maintenance and insurance - Whether there is an option to renew - Whether there is an option for purchase and, if so, the terms of the option - What is to happen if the lease is terminated before the end of its prescribed term |
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Quiet possession
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A warranty that there will be no interference with the lessee's possession or use of the asset
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Bailment
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A transfer of possession of personal property without a transfer of ownership
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Gratuitous bailment
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A bailment where one party provides no consideration, or where there is no intention to create a contractual relationship
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Sub-bailee
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A person who receives a bailment of property from a bailee
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Fungible goods
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Goods that may be replaced with different but identical goods
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Common carrier
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A business that holds itself out to the public as a carrier of goods for reward
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Inherent vice
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A latent defect or dangerous condition of goods
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Innkeeper
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A person or firm that maintains an establishment offering lodging to any member of the public
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Pledge or Pawn
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A bailment of personally property as security for repayment of a loan where possession passes to the bailee
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Pawnbroker
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A business that loans money on the security of pawned goods
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What are the 5 types of bailment?
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- Storage and safekeeping
- Repairing - Transportation - Innkeeping - Pledge or pawn |
