Document background
The Lease And Purchase Agreement serves as a vital instrument in Canadian business and commercial transactions where parties wish to structure a transaction that begins as a lease and transitions into a purchase. This document type is particularly useful when the lessee/purchaser requires immediate use of the asset but prefers or needs to defer the full purchase commitment. It typically includes detailed provisions for lease payments, maintenance responsibilities, purchase option terms, and the mechanism for transitioning from lease to ownership. The agreement must comply with both federal and provincial Canadian legislation, including the Commercial Tenancies Act, Sale of Goods Act, and relevant consumer protection laws. It's commonly used for equipment financing, commercial property transactions, and various asset acquisitions where staged ownership transfer is advantageous for tax, financial, or operational reasons.
