capital lease

Kind of lease agreement where the supplier or the lessor has chance to sell the subject matter or the product to the lessee at the end of the lease agreement. In other words the lessee can obtain the ownership of products after setting the full amount of lease agreement

Capital lease is a kind of conditional sales contract which comes with many stipulation to terminate the contract at any time to protect the lessor’s rights

Generally deprecation on the product is mentioned in the capital lease agreement that help determining the price of products at the end to lease agreement