Lease Components vs Non-Lease Components in a Contract

What are the lease components and non-lease components in a contract?

Under the given scenario, how do we differentiate between the two? What is the significance of each component in the contract?

The components of the contract that are lease components are office space and office equipment and computer equipment. On the other hand, maintenance of common facilities and separate air filtration system in Duke's office space are non-lease components.

In the given scenario, the following are the lease and non-lease components:

Office Space: Office space is considered a lease component because it is a space that Duke will occupy as a lessee for the term of 10 years. Office equipment and computer equipment: Office equipment and computer equipment are considered lease components because these are items that are being leased along with the office space.

Maintenance of common facilities: Maintenance of common facilities is a non-lease component because it is not part of the lease agreement. However, Blossom has provided basic repairs and maintenance as part of the agreement.

Separate air filtration system in Duke's office space: The separate air filtration system is a non-lease component because it is not part of the original lease agreement. It was installed later, and Blossom did not change the monthly rent.

So, the components of the contract that are lease components are office space and office equipment and computer equipment. On the other hand, maintenance of common facilities and separate air filtration system in Duke's office space are non-lease components.