An agreement that transfers custody, but not possession of equipment, is not a lease. Possession necessarily includes the right to control property, even property that is in the physical custody of others. An ice machine is placed on location at a convenience store in exchange for payments based on the number of bags of ice sold. Under this agreement, the equipment is hooked up to the store's power and water supplies. The machine automatically creates, bags and stacks ice.
Retail customers remove ice and buy it at the store's cash register.
The owner of the machine installs it and maintains it 24 hours a day. The owner of the machine may pick it up at any time. The store owner does not have the right to remove or maintain the machine. This agreement is not a lease, but an agreement to sell ice. In this situation, it makes no difference that the ice-making machine is located at the customer's convenience store rather than the owner's ice factory.