LEASEHOLD. A leasehold is an estate held under or by virtue of a lease. An estate for years usually commences by means of a written lease. It is important to distinguish between a lease and-an agreement to lease, the former being a completed contract and the latter only a stipulation for the formation of a cont=act at some future time. It is often diffi cult to determine to which of the two classes an instrument belongs, without resorting to an interpretation based upon the intentions of the contracting parties. If a lessee fails or re fuses to enter into possession under and in ac cordance with the terms of a lease, the pos session remains undisturbed in the lessor, and the remedy of the latter would be by an action for not entering into possession and for conse quent damages, rather than for a breach of the conditions of the terms of the lease, the rela tion of landlord and tenant not having been established before an entry under the lease. A
person can convey by lease no greater interest than he possesses in an estate. If the lessor has only a life estate it terminates with his death, although he may have executed a lease for a term of years not completed at the time of his death. The ordinary powers, duties and obligations of the contracting parties may be increased, diminished or modified by special provisions in a lease. Many lease contracts provide for all of the contingencies which can ordinarily happen. It is not Infrequent that a clause in the instrument provides that the lessee may build upon land leased to him, and that he shall have the right to remove his build ings at the expiration of his term, or purchase the fee. Any provision not illegal or incon sistent with public policy may be an incident of a leasehold.