Common coverage areas include: Although most leases are written, there are verbal leases that can be executed in the form of verbal contracts; However, it is important to note that not all states allow oral residential leases and oral trade agreements are prohibited in all states. Tenants with verbal residential leases are protected by the tenant rights laws that exist in each state. The complexity of commercial leases makes it almost impossible to justify verbal agreements in court, which is why they are not admissible. A lease protects both landlords and tenants by outlining their obligations and responsibilities to each other and to the property. Without a formal lease, it can be difficult to seek redress in the event of disputes, damages, evictions, breaches or other disputes.