LEASING CONTRACT AND CONTRACTUAL INTERDEPENDENCE
Published: 2017-01-01
Volume: No 48 - December 2017
Pages: 51|57
Authors
- Spiru Haret University
Abstract
Leasing (credit-rent) is a complex, original and stand-alone legal operation as a financing technique for commercial companies. This transaction, as a whole, typically includes two distinct transactions: the leasing company enters into a sale-purchase agreement with a producer (supplier) through which it purchases the assets to be leased out with a unilateral sales promise, then the leasing company (the borrower) concludes a lease with the user (the borrower) to lease the asset for a certain period of time, with the option of ultimately buying it for a residual price. In court practice, the question arises whether the lease should be canceled or terminated for lack of cause if the sale/purchase contract concluded between the supplier and the leasing company was resolved for non-compliance with the user’s requirements or for hidden vice that does not work for the intended use. The solution adopted in the French case-law was that the two types of contracts are their mutual cause (one with respect to each other) being in the face of contractual interdependence.
Keywords: Contract Case, leasing contract, Contractual interdependence
Cite this article
APA: Spiru Haret University (2017). LEASING CONTRACT AND CONTRACTUAL INTERDEPENDENCE. Internal Auditing & Risk Management, Vol. 48, No. 48, pp. 51-57.
BibTeX:
@article{spiruharetuniversity2017202,
title = {LEASING CONTRACT AND CONTRACTUAL INTERDEPENDENCE},
author = {Spiru Haret University},
journal = {Internal Auditing & Risk Management},
year = {2017},
volume = {48},
pages = {51----57},
doi = {}
}