Leasing is a contract characterized by a threefold legal relationship between a lessor, a lessee and a leasing object supplier. The lessor and the leasing object supplier conclude a purchase contract, and the lessor and the lessee conclude the leasing contract. By leasing contract, the lessor has duty to acquire ownership of the leasing object from the leasing object supplier and to grant the usage of the leasing object to the lessee for a specified period. Duty of the lessee is to pay a specified fee for it. The most important division of leasing is with regard to the content and characteristics of the leasing contract, i.e. financial and operational leasing. The lessor is a leasing company that has the approval of the Croatian Financial Services Supervisory Agency to perform leasing operations. This paper provides a detailed analysis of leasing contract, rights and duties of contractual entities in leasing operations, types of leasing, their similarities and differences and presents advantages and disadvantages of leasing and its comparison with similar institutes.