What is a Master Lease Agreement?

• A. single, umbrella agreement for series of lease transactions
• B. lease governing only one transaction
• C. document describing equipment
• D. short-term lease only

Answer: (A)

A Master Lease Agreement provides the general terms that will govern multiple lease transactions under one umbrella. It creates consistency across all leases by standardizing core provisions such as payment terms, interest or pricing, fees, maintenance responsibilities, insurance, default remedies, and end-of-lease options. Individual leases are then documented with asset-specific schedules that reference the master agreement, listing each asset, its price, term, and when payments are due. This structure lets a business add new equipment to existing terms without renegotiating each time, which is why describing it as a single umbrella agreement for a series of lease transactions is the best fit. It’s not just about describing equipment, nor about a single transaction or a short-term lease only.