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The video tutorial explains the distinctions between a sublease agreement and an assignment. A sublease involves an agreement between a tenant and a subtenant, which can cover part or all of the premises. In a sublease, the tenant maintains privity of contract with the landlord while transferring only privity of estate to the subtenant, resulting in two separate contractual relationships. The subtenant does not have a direct relationship with the landlord. If issues arise, the tenant must communicate with the subtenant, who then relays concerns to the landlord. Unless a lease specifically prohibits subleasing, tenants generally have the right to do so, but should seek consent to prevent misunderstandings.