True Lease Agreement

It is therefore possible, which has already been examined in India, that a court could become part of the substance of a lease or lease agreement and consider it to be a case of secured credit. This issue has been the subject of serious debate in the courts in several other jurisdictions, particularly in countries where leasing has been in place for several decades. In particular, the tax aspect of defining a real lease was not the same as the legal aspect. The legal aspect concerns only the intention of the parties to transfer property rights over the owner. At the beginning of a lease agreement, the lessor will consider the residual value forecast of the asset at the end of the lease to determine expectations for each additional value that the asset may bring. Most operating leases are assets that will have some value at the end of the lease, including vehicles or heavy equipment and machinery. Indian homeowners may be waiting to learn, although this is a difficult way to learn that the leasing and leasing business, in the law, spirit and prudence of business, requires the prudence of assets. Borrower-based financing can be a good money loan, but bad leasing. The financing world in general recognizes that asset-based financing is much safer and more reliable than business-based financing. However, this principle inevitably becomes strong for leasing or leasing operations which, because of their technical nature, are considered asset financing transactions. In a case involving the purchase of rental assets, the Indian Supreme Court recently upheld the owner`s legal interest in the asset and its right to withdraw, even though a clause was not included in the agreement.

[ K A Mathai aka Babu v. Kora Bibbikutti (1996) CSC (Cri) 281]. Since it is a general property right, it did not matter that such a clause explicitly appeared in the agreement. However, certain provisions of the conditional sales contracts have designated the transaction as a lease agreement that states that the lessor “leases (and not finances) the software to the customer, that if the debtor has not made payments, he must delete the software and the funder has the right to declare any license terminated and access the debtor`s systems to disable the software. Another relevant factor is the length of the lease. A short-term lease generally indicates a true lease, since the property under rental rights has a significant residual term of use after the expiry of the lease and may be re-leased or resold by the lessor (or an insured party). , are considered guaranteed financings and not property owners. In many cases, there may not have been any assets for lease. In many cases, installation values have been developed. Leasing assets that are an integral part of the taker`s real estate are common. In summary, there are a few cases where the lease agreement is considered a “contract” for the use of the vehicle, defined as a “real rental,” while other types of rental are used to allow someone to buy a vehicle over time, and the lease itself is only a statement of financing to be able to purchase the vehicle over time – which can be called “financial leasing.