A lease in which the lessor provides services such as maintenance and care of leased property. The cost of such service(s) may be built into the lease or it may be paid under a separate maintenance agreement that the lessee was required to purchase. Which term best fits this description?

A lease in which the lessor provides services such as maintenance and care of leased property. The cost of such service(s) may be built into the lease or it may be paid under a separate maintenance agreement that the lessee was required to purchase. Which term best fits this description?

• A. Service Lease
• B. Cross Border Financing
• C. Wet Lease
• D. Progress Payment

Answer: (A)

A service lease is a lease arrangement where the lessor provides ongoing services, such as maintenance and care of the leased property. The cost of these services can be included in the lease payments or charged under a separate maintenance agreement that the lessee must purchase. This setup means the lessee benefits from predictable upkeep responsibility handled by the lessor or through a dedicated service contract. This differs from other terms: a wet lease is an aviation-specific arrangement involving aircraft with crew and often maintenance, not a general property leasing concept; cross-border financing relates to funding across different jurisdictions; a progress payment describes staged payments tied to milestones rather than ongoing service provisions.

A service lease is a lease arrangement where the lessor provides ongoing services, such as maintenance and care of the leased property. The cost of these services can be included in the lease payments or charged under a separate maintenance agreement that the lessee must purchase. This setup means the lessee benefits from predictable upkeep responsibility handled by the lessor or through a dedicated service contract.

This differs from other terms: a wet lease is an aviation-specific arrangement involving aircraft with crew and often maintenance, not a general property leasing concept; cross-border financing relates to funding across different jurisdictions; a progress payment describes staged payments tied to milestones rather than ongoing service provisions.