Understanding Rental Contracts

D

A rental contract is a legal agreement between a landlord (or lessor) and a tenant (or lessee) that outlines the terms and conditions of renting a property. It establishes the legal relationship between the parties involved and provides a framework for resolving disputes that may arise during the lease term. The rental contract is a crucial document that protects both the lessor and lessee from any adverse action by the other party.

Option A is correct because a rental contract protects both parties from any adverse action by the other party. For example, it outlines the landlord's responsibilities to provide a habitable unit, and the tenant's responsibilities to pay rent and not damage the property. If either party breaches the contract, the other party can take legal action to resolve the issue.

Option B is also correct because a rental contract specifies the amount of monthly payment that the tenant must pay to the landlord. This payment may include rent, utilities, and other expenses.

Option C is correct because a rental contract specifies the length of the lease agreement. The length of the lease agreement can be fixed, which means that it is for a specific period, or periodic, which means that it is renewed automatically after a specific time, such as monthly or yearly.

Therefore, option D is the correct answer because a rental contract protects both the lessor and lessee from adverse action by the other party, specifies the amount of monthly payment, and specifies the length of the lease agreement.