The Finance Lease Contract System - Based On Contract Law, Finance Leases Chapter

According to the Law of Contract, the financial lease contract refers to a contract whereby the lesser buys the leased property from the seller based on the lessees choice of the seller and the leased property, and supplies it to the lessee for the latter's use, and lessee pays the rent. It is one of fifteen contracts named which are enumerated in the Law of Contract, following the lease contract of which the financial lease contract is treated as the special case. The author studied the reality of the financial lease and concerned countries, region and the international societys regulations on the definition of financial lease contract or transaction, and advanced assumption that it should amend the system of the financial lease contract in our Law of Contract. The assumption involved five aspects. The first aspect is about amending the definition of the financial lease contract, and the second is of modifying the quality of the financial lease contract. The third aspect is that the financial lease contract should be treated as the contract concerned three parties and the rights and obligations belong to the every party's should be stipulated in one integrated contract. The forth involved transformation of some systems, such as the dual controlled system of the lesser, the lesser's obligation to guarantee no flaw of leased object, the right to charge under the sale contract, renting by foreign currency, the lessees risk of appointing agent, and so on. The last aspect is about establishing the integrate system of the financial lease contract institution, some non - typical forms of the financial lease contract should be regulated in the Law of Contract. The author writes four chapters to discuss all aspects except the forth one which is in the process of writing the chapter about legal nexus, and subjects of the forth aspect will be discussed when the particular one is involved.The article includes four chapters in accordance with the thought aforementioned.The first chapter introduces the origin, basic content and functions of the financial lease transaction, which is the practical basis and the economical background to study the financial lease contract. The functions to contrac - tax and depreciate acclerated are mentioned specially, which helps us to understand financial characteristic of the financial lease contract and the reason that the financial lease contract is a typical one.The second chapter introduces the definition of the financial lease contract in the United States, England, Germany, Japan and France because financial lease transaction is advanced in these countries, then the international societys and Tanwans definition. Based on this, the author comments and studies merits and demerits of definition in Law of Contract of the financial lease contract, and advanced new definition in the article of the financial lease contract. The financial lease contract refers to a contract whereby the lesser buys the leased property from the seller based on the lessee's choice of the seller and the leased property, and supplies it to the lessee for the latter"s use, and lessee pays the capital and interest in the form of rent. Based on this definition, compared with the sale contract that the ownership of an object is reserved and the price is paid by stages, lease contract and loan contract, the content of the financial lease contract is researched and the characteristic and nature of it is brought to light. The financial lease contract is determined to the special case of the loan contract, and it is the loan contract in nature in the form of lease.In the third chapter, subjects, objects and all the parties'rights and obligations under the financial lease contract are analyzed in the aspect of legal nexus. The author advances the contract including three parties should be established in which rights and obligations of all the parties would be regulated respectively. The parties of the financial lease contract are fundamental parties,which is the seller, the lessor and the lessee, and non - fu...