Logical Logistics Inc. (Logical Logistics or the Company) provides transportation and logistics services to customers through a network of offices in North America, South America and Asia. The Company contracts fleets of shipping vessels, trucks, and aircraft to provide regional, long-haul, and international shipments of the customers goods. In addition, the Company contracts warehouse operators across North America for use of their facilities as distribution centers that temporarily store goods in transit. The Company has entered into the following contracts with the vendors identified below. Logical Logistics enters into a contract with See Boat Inc. (See Boat) to use their shipping vessels to transport goods from North America to Asia. See Boat has a fleet of 25 multi-use shipping vessels, each of which has the capacity to hold 1,000 shipping containers. The terms of the contract are as follows: The contract term is for the duration of the voyage to transport Logical Logisticss cargo from Los Angeles to Shanghai. Logical Logistics does not have discretion to change the departure or arrival ports without a renegotiation of the contract fees. SB0829, a commercial shipping vessel in See Boats fleet, is dedicated to delivering Logical Logisticss cargo for the term of the contract. See Boat cannot substitute SB0829 with another vessel in its fleet nor can it use SB0829 to transport goods for other customers. The contract identifies the shipping containers and acceptable cargo (e.g., semiconductors) to be transported on the ship as well as the transportation route. Logical Logistics does not have discretion to change the identified cargo without renegotiating the contract fees. See Boat is responsible for the safe passage of the cargo, as well as operation and maintenance of SB0829. The crew determines the ships route, speeds, and date of departure from Los Angeles. In addition, Logical Logistics cannot, under any circumstances, replace See Boats crew. Logical Logistics enters into a contract with Fly-By-Air Inc. (Fly-By-Air) to use their aircraft to transport goods from South America to North America. Fly-By-Air has a fleet of 50 multi-use aircraft, each of which has the capacity to hold 500 shipping pallets of goods. The terms of the contract are as follows: The contract term is five years. FBA1231, a commercial aircraft in Fly-By-Airs fleet, is dedicated to delivering Logical Logisticss shipping pallets during the term of the contract. Fly-By-Air cannot substitute FBA1231 with another aircraft in its fleet. Logical Logistics determines (1) the airports from and to which goods are shipped and received and (2) the order in which deliveries are made to the airports. Fly-By-Air provides the aircrafts pilot and crew, and Logical Logistics instructs the pilot and crew accordingly. While Logical Logistics determines what cargo will be transported throughout the term of the contract, certain restrictions prevent the Company from shipping flammable materials. Logical Logistics has the right to deploy the aircraft regardless of whether the cargo levels meet the full storage capacity of the aircraft or not. If FBA1231 is below capacity, Fly-By-Air cannot use the excess storage space to ship products of its other customers. Logical Logistics enters into a contract with Trucking Co. Inc. (Trucking Co.) to use their trucks to transport goods from distribution centers to retail stores across North America. Trucking Co. has a fleet of 1,500 multi-use long-haul trucking carriers, each of which has the capacity to hold 100 shipping pallets of goods. The contract term is five years. Trucking Co. must deliver Logical Logisticss shipments within three weeks of the Companys notification that it has pallets of customer goods ready for shipping. Trucking Co. may choose any truck from its fleet to fulfill the shipping request. Logical Logistics may request shipment of 25 to 100 shipping pallets of goods in a single request. (Individual shipping requests generally do not exceed 50 shipping pallets.) Trucking Co. has the right to use any excess storage space to ship products of its other customers. Trucking Co. determines the shipments delivery date (within the three- week period), as well as the shipping route. Logical Logistics enters into a contract with Warehouse Co. Inc. (Warehouse Co.) to store up to 18,000 shipping pallets of goods at one of Warehouse Co.s locations. Warehouse Co. has the capacity to store 20,000 shipping pallets of goods at that location. The terms of the contract are as follows: The contract term is 10 years. Logical Logistics can store up to 18,000 shipping pallets at one specified Warehouse Co. location. Logical Logistics will be charged for storage of 18,000 shipping pallets, regardless of the actual number of pallets stored, and Warehouse Co. cannot use any of Logical Logisticss unused storage space for other storage needs. Warehouse Co. can use the remaining space in its warehouse for other storage needs. Warehouse Co. cannot relocate Logical Logisticss inventory to another facility. Logical Logistics has the right to decide which shipping pallets are placed in storage and when they can be removed. Warehouse Co. provides the loading and unloading services for the warehouse activities, both of which are dependent on Logical Logisticss decisions about which shipping pallets are placed in storage and when they can be removed.

For each of the four contracts (See Boat, Fly-By-Air, Trucking, and Warehouse),

Determine which provisions, if any, indicate that the contract contains a lease. (If there are no such provisions, say so.)

Determine which provisions, if any, are not consistent with the contract containing a lease. (If there are no such provisions, say so.)

Based on your analysis of the provisions, do you think the contract contains a lease? Why or why not?