A lease created between the lessor and the lessee the special relationship of the landlord and tenant. The lessor is the landlord and the lessee is the tenant. A lease has certain features, which characterize it as a lease. Firstly, it must, as already observed, be for a definite period. This means that the dates on which being and ends must never be in doubt. It may begin on the date of the instruction creating it, or on a past or future date but such date must be clearly ascertained or be capable of ascertainment.

A lease which begins on a past date or the date of its execution is known as a lease in possession; one which begins on a future date is known as a reversionary lease. Secondly, a lease must give exclusive possession to the lessee. There can be no lease if the lessor or landlord retains any concurrent right to possession or control of the land. A person who is on land but it not entitled to exclusive possession may be a licensee but never a lessor. London & N. W. Rly v Buckmaster (1874) 10 Q.B.

A lease does not however, cease to be a lease simply because the lessor imposes restrictions on the manner in which the land may be used. For example, a lessor may stipulate in a lease that the property leased should be used as for dwelling purposes only. Although a lessor grants to a lessee the right to exclusive possession of the property leased, this does not divest the lessor of all his interest in the land. Since the lease is for a fixed period, the lessor is entitled to repossess the property when the lease comes to an end and is known as a reversion. It is a present interest in land which entitle the lessor to all the rights and privileges of a landlord e.g. to receive rent and to enforce the provision of the lease.

It may be alienated and it devolves on the death of the lessor on the person entitled to it by law. A lease contains covenants between the lessor and the lessee. These covenants may be either express or implied by law. Unless there is a covenant absolutely prohibiting or restricting the alienation of the land, the lessee may create a sublease or assign the residue of the unexpired term of the lease, although in some cases the consent of the lessor will be required before effecting the alienation.

A lease is a contract between the lessor or landlord and the lessee or tenant whereby the lessee is granted exclusive possession of land for a fixed period upon terms and conditions agreed upon between the parties. Like any other contract, a lease should embody all the material terms and conditions, which the parties intend to be binding on them. These must include:

• The identity of the lessor and lessee and the respective capacities in which they are contracting;
  
• The precise area of the land to be lease must be accurately described; · Period of the lease must be clearly stated;
  
• The consideration for the lease. This usually takes the form of a rent payable annually or in such manner as the parties agree. The consideration may however, take form
• Covenants, stipulations and conditions. There various covenants which the law implies in a lease. Apart from these implied covenants the parties must clearly specify any other covenants and any conditions and stipulations, which they intend to be binding on them.

The rule of contract that the parties must be in complete agreement on all material terms applies to a lease. Nothing must be left in doubt and nothing should be left to implication except such as the law allows.

It usually appears at the foot or end of the document but need not necessarily be there. It may appear elsewhere in the document provided that it is made clear that it is meant to cover the whole document. A party need not append what is known as his usual signature in order to give effect to the writing. If his name appears in the instrument and he does anything recognizing the name as his, he will be taken to have signed it: see Cohen v Roche (1927) 1 K.B. 169.

The writing required by law need not take any particular form, but it normal and prudent practice to embody what the parties have agreed in a formal document. A lease may be created by an exchange of letters or by an informal writing provided that these contain all the material provision and conditions with which the parties intend to be binding themselves.

It is important to draw a distinction between informal writing, which is not meant to be binding but to be replaced by a formal instrument when that has been drawn up. If there is any indications in the writing that something is left to be done before the parties are bound by it, then it is of no legal effect. Therefore, where expressions such as "subject to contract" or "subject to a formal agreement being drawn up" are used, what the parties have written will not be considered binding unless there are strong indications from the circumstance that parties intended to be bound in any case: see Rossiter v (1878) 3 App. Cas. 1124.