Study Of The Lessor’s Rights Protection In Financial Leasing

Financial leasing is a new type of transaction that relies on modern marketing economy. It hasdouble function including financing and leasing. In the whole period of transaction, the lessors willmake agreements with the sellers in order to buy the equipments that the lessees need. Then the lessorswill lend the equipments to the lessees and ask the lessees to pay the rent that is made of expenses ofequipments and relative profit. The financial leasing has some characters: firstly, in the transaction,though the lessors are the real holder of the equipments, the lessors cannot get the possession of theequipments, in contrary, the lessees keep the possessions of the equipments in the whole period of thetransaction. Secondly, the equipments cannot be used usually. It is hard to sell again if it is taken back tothe lessors. Thirdly, the key to get the expenses and profit is whether the lessees can pay the rent in timeor not. All above, the lessors’ rights are vulnerable to the risk. The truth is the financial leasing is toonew to people to learn. So it is not enough to protect the financial leasing in legislation as well as instudy. Our country’s CONTRACT LAW has made an independent chart for financial leasing, but it lacksthe relative clauses for rights protection of lessors. So, this article will clarify the particular rules ofprotecting the rights of the lessors firstly, and then to specify how to protect the rights of lessors indifferent situations, which will includes some discussions of foreign and international legislations.Through the discussion, we will find the shortcomings of our own legislations. The article is aimed at toprovide some useful suggestions to our legislations. This article is made of6parts, the first part is theintroduction of the whole article; the second part is the general introduction of financial leasing; thethird part is the particular rules of lessors’ rights protection; the fourth and fifth parts tell us how toprotect the lessor’s rights in different situations.The last part is the summary of the article.