Correct option is D
A lease is defined under Section 105 of the Transfer of Property Act, 1882, as a transfer of a right to enjoy the property for a certain period in exchange for rent or premium. It is important to note that in a lease,
only a partial transfer of rights occurs. The lessee gains the right to use and enjoy the property, but the lessor retains ownership, and the property reverts to the lessor after the lease period ends. Therefore,
complete transfer is not an essential element of a lease.
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Essential Elements of a Lease
1.
Party A lease must involve two parties:
· The
lessor, who grants the lease, and
· The
lessee, who accepts the lease. Both parties must be competent to contract as per the Indian Contract Act, 1872.
2.
Property There must be a specific
property that is the subject of the lease. The property could be immovable, such as land, buildings, or any structure. The property must be clearly defined, and the lease terms must specify which property is being leased.
3.
Partial Transfer A lease involves a
partial transfer of rights. This means the lessee is given the right to use the property for a specified period, but the ownership remains with the lessor. The lessee has no right to sell or permanently alienate the property.
4.
Duration The lease must have a specific
term or duration. The lease can be for a fixed period, perpetual (in rare cases), or on a periodic basis, such as month-to-month or year-to-year.
5.
Rent or Premium In consideration for the lease, the lessee must pay rent or a premium. This payment can be in the form of money, services, or other compensation agreed upon by the parties.
