Legal Definitions - tripartite lease

A tripartite lease is a type of finance lease used by businesses to finance capital equipment. It involves three parties: the lessor (who finances the asset), the lessee (who uses the asset), and the supplier (who manufactures or supplies the asset). The lessee pays maintenance costs and taxes and has the option to purchase the asset at the end of the lease for a nominal price.

For example, a construction company may enter into a tripartite lease to finance the purchase of heavy machinery. The lessor (a financial institution) provides the funds to purchase the machinery, the lessee (the construction company) uses the machinery for their projects, and the supplier (the manufacturer of the machinery) provides any necessary maintenance or repairs.