5.2 Essential Elements and Formation

1. Parties competent to contract (the general law — Law of Contract-I, Unit 3).2. A determinate property — the demised premises (land, house, flat, vehicle, equipment).3. A term — fixed, periodic or renewable; a lease must have a beginning and an end (an endless "lease" is a transfer in substance).4. Rent or other consideration — the price of enjoyment.5. Delivery of possession to the lessee (the leasehold's birth).6. Formalities as the law requires: in Nepali practice, written lease deeds for immovables — and registration where the transaction's nature demands it (the registration law's discipline); long-term leases affecting land commonly pass through the offices' documentation route.