What Do You Need To Know About Car Lease
A car lease is the most commonly used means of buying a brand-new car. In practice, however, it too often causes serious ambiguities according to brampton criminal law firm. On the other hand, this type of contract is far from settled in favor of the person receiving the lease. Therefore, it is good to be well aware of the risks that we may face and only then to decide whether we would like to use this particular tool to acquire the dream car.
A car lease and a lease sale contract are two completely different types of contract. In the sale of a payment, the rights and obligations of the seller and the buyer are relatively equally settled.
Car Leasing – Legal Framework
In fact, when we talk about a car lease contract, it should be noted that the law does not specifically regulate it, but leasing in general. Let’s see what this contract is and what its features are. The legal framework is mainly found in the Commercial Law.
The Essence Of A Car Lease Agreement
According to the law there are two types of leasing – operational and financial. The two sides are the same. The lessor is the person who provides the lease. The lessee, on the other hand, is the person who uses it. Thus, in an operating lease, the lessor undertakes to provide an item of property for consideration. That is, this relationship looks a lot like rent. With the expiry of the lease agreement, the lessee may return the car, replace it with a new one or become its owner by paying its residual value.
In the case of financial leasing, the lessor undertakes to acquire the property from a third party under terms and conditions set by the lessee and to provide it for use for consideration. In car leasing contracts, it is financial leasing that is the more common hypothesis. This is because the lessor is usually a designated car dealership for a well-known brand that acquires the leased car from its headquarters in the country of origin. In the case of financial leasing, upon expiry of the contract, the lessee may become the owner of the leased property. That is to say, the relationship here is very similar to the one in the sale of a property retention payment.
Features Of The Lease Agreement
Unlike the lease and sale contract, where the principle that the risk of accidental loss or damage to the property is for the owner, in the case of a finance lease, this risk is for the lessee, who, as we saw above, is not the owner of the property during the term of the contract.
What does this mean? In simple terms, this means that even if the car is stolen or damaged, the lessee will not be exempted from paying the contract fees until the end of its term. There is already a mandatory case law on the theft of a leased car.