This lease is for a certain period of time during which it cannot be terminated. The duration of this fundamental term is determined by the asset's economic life and is generally less than the asset's predicted life. This agreement allows the lessee to utilise the asset after the basic time has expired, or the lessee can acquire the item at a stipulated price after the lease's end. Financial leasing is often utilised for land, buildings, and high-value equipment. During the lease time, the lessor usually recovers his investment in the item.