Deposit, lessee

Updated: Aug 20, 2021

A lessor of property, real or personal, often asks for a deposit from the lessee to cover possible losses through the latter’s negligence. This type of deposit is, in the absence of costs against which it was intended to afford protection, returnable on termination of the agreement. This deposit should not be confused with a payment which is a premium on a lease.

Reference: The Penguin Business Dictionary, 3rd edt.

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