What type of contract is used when an asset owner grants use of that asset to another for periodic payments?

The correct answer is a lease, which is specifically designed for situations where one party (the asset owner) grants another party the right to use an asset for a specified period in exchange for periodic payments. This arrangement often involves real estate or equipment, allowing the lessee to utilize the asset without taking ownership.

Leases typically outline the terms of use, payment structure, duration, and responsibilities of both parties. They provide legal protection and clarity regarding what is expected during the leasing period, including maintenance obligations and possible penalties for contract breaches.

Other options, while they seem similar, do not encapsulate the formal and legal structure that a lease agreement possesses. For instance, a rental agreement might be more informal or short-term and often refers specifically to the rental of residential property, while an asset contract or usage agreement lacks the specific legal terminology and implications associated with leases. Therefore, a lease is the most accurate classification for the described arrangement between the asset owner and user.