The lease agreement, which is regulated by the Law on Obligations, is a key institution of civil law that allows the use of movable or immovable property without transferring ownership. In this final paper titled "Essential characteristics of the lease agreement with a focus on judicial practice" the author will define the concept of agreements in general, describe the historical development of lease agreements, analyze the essential characteristics of lease agreements, compare lease agreements with rental agreements, and interpret their application through judicial practice. Originally, the lease agreement was not a standalone legal institution but was part of a broader contract along with rental, work, and service agreements known as locatio-conductio. The lease agreement is defined as a legal relationship in which the lessor undertakes to transfer certain property to the lessee for use, while the lessee undertakes to pay rent for that use. Lease is a narrower concept than rental, as it pertains solely to the right to use property, excluding the right to collect the fruits of that property, which is a characteristic of rental agreements.