Explanation

The parties to a lease transaction are the lessor and the lessee where the lessor is the owner of the asset and provides it to the lessee on rent or lease to use it for a definite time period and adhere to the terms and conditions mentioned in the agreement. Lessee is the other party who uses the lessor’s asset in lieu of a fixed compensation. Both the parties must accept the terms of agreement to make it a valid contract.

Verified Answer

The parties to a lease transaction are:

Lessor: A lessor is the party in the agreement who owns the asset that is leased or rented to another party.
Lessee: A lessee is the other party who acquires the asset on lease and pays for its use to the lessor.