Law on financial leasing governs:
- financial leasing transactions
- financial lease agreements
- rights and obligations of parties to a financial leasing transaction
- terms of performing financial leasing transactions
- supervision of Lessors’ operations and
- the Register of Financial Leases.
Financial Leasing Transaction
A financial leasing transaction means a financial intermediation transaction which is performed by the Lessor and implies that the Lessor, while retaining the right of ownership of the Lease Asset, transfers to the Lessee, for an agreed period of time, the right to possession and use of the Lease Asset, including all risks and rewards incidental to ownership, in return for the Lease Payment which the Lessee pays to the Lessor, provided that at least one of the following conditions has been met: Continue reading Parties to a financial leasing transaction
According to the provisions of the Law of Contract and Torts lease agreement shall be defined as a contract by which one person shall assume the obligation to deliver a specific object to another person (lessee) for use, and lessee shall assume the obligation to pay him in return a specified compensation (rent) and to restore him the rented thing after the termination of the contract. The use shall also include collecting yields, unless otherwise provided by contract or by trade usage.
The lease agreement is named contract because it is regulated by law, onerous, consensual – it is formed in accordance with the consenting minds, bilaterally binding and simple contract – it does not contain elements of the other contracts.
Also according to the provisions of the Law of Contract and Torts the lease agreement is an informal contract. Continue reading Real estate lease agreement according to the Law of Contract and Torts