Leasing is a type of contract, in which a lessor purchases a good and funds it in full. This object is provided to the lessee for his or her independent use against a regular small monthly fee payment. It is a transfer of use for a fee. From this standpoint a leasing contract is close to a rental agreement.
However, a leasing contract differs from a rental contract, because in addition to the transfer of the use such matters as contractual maintenance and repair costs, as well as warranty claims are transferred to the lessee.
The differences from a conventional lease show the complexity of leasing law: unlike the renting law, there are not just two parties involved in the contract, but in addition to the contractual parties (lessor and lessee) there is also a third party, the manufacturer of the leased asset.
Difficulties can arise in this respect, for example in case of the lease agreement reversal in the event of defects on the leased object.
Because of the many advantages which leasing involves (for example, protecting one’s own liquidity) and the fact that it includes various economic benefits in different forms (for example, finance leases), it is a permanently popular contract form.
It is reasonable to get a competent support long before the lease contract conclusion to have it designed or to review a contract offered to you. Our lawyers will help you design your contracts from the start so you can withstand a subsequent judicial review.