Which party is referred to as the lessee in a lease agreement?

In a lease agreement, the lessee is the party that contracts to use another's asset for a specified period of time. This arrangement allows the lessee to utilize an asset, such as machinery or property, without having to purchase it outright. Instead, the lessee pays the lessor—who owns the asset—a series of payments over the duration of the lease. This setup is advantageous for businesses or individuals that may not have the capital to invest in purchasing the asset or prefer to avoid large upfront costs.

The lessee gains access to the asset and benefits from its usage, which could be integral to their operations. This term is crucial to understand in the context of leasing, as it highlights the relationship between the two parties involved in the agreement—where the lessee's rights and obligations primarily concern the use of the asset rather than ownership. The other parties mentioned in the choices, such as the owner of the asset or the party providing financing, relate to different roles within the leasing arrangement but do not define the lessee's position.