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The property of the company was operated by the Michigan Central from date of completion in 1892 to the date of sale, under a provision of the lease agreement between the Michigan Central and The Jackson, Lansing and Saginaw Railroad Company, dated August 31, 1871, covering branches to be constructed.
The agreement called for annual lease payments of $7,500 plus $50 for expenses, and for the lessors to pay the interest on the LMR's $75,000 bonded debt. The Michigan Central was to operate the line and divide earnings and expenses evenly with the Lake Shore. [6] At that time, the LMR's 7.96-mile (12.81 km) route encircled the city. [7]
English: Combines elements of a traditional rental agreement with an exclusive right of first refusal option for later purchase on the home. It is a shortened name for Lease with Option to Purchase Contract.
A Lease-Purchase Contract, also known as a lease purchase agreement or rent-to-own agreement, allows consumers to obtain durable goods [1] or rent-to-own real estate [2] without entering into a standard credit contract. [1] It is a shortened name for a lease with option to purchase contract.
As may be the case with other contracts, real estate contracts may be formed by one party making an offer and another party accepting the offer. To be enforceable, the offers and acceptances must be in writing (Statute of Frauds, Common Law)and signed by the parties agreeing to the contract.
The Effective Date of the new standard - date at which time all companies must follow the new lease accounting standard when preparing financial statements –is fiscal years beginning after December 15, 2018. As originally released, ASC 842 required companies to restate comparable years in their annual reports.
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