Legal Risk Prevention Of Lessor In Finacial Leasing Contracts

With the rapid economic growth in China, there are great changes in the financial industry. Depend on the advantages such as flexible repayment methods and partial deductible taxes, financial leasing has been utilized extensively in a range of industries as a significant financial instrument.However, due to the unique business features, the lessor of financial leasing undertakes tremendous legal risk after the business relationships established. If the lessee of financial leasing or the supplier of lease item cannot honors an agreement, there would be no legal protection for the rights and interests of lessor. Since there are deficiencies of the national legal norms about financial leasing, the lessor of financial leasing undertakes many legal risks. As a result, the development of financial leasing industry has been restricted seriously.In this dissertation, firstly, the meaning of financial leasing contract will be introduced. This includes the concept of financial leasing contract, the legal relations in financial leasing contract and the right-obligation relationship among three parties in financial leasing contract. Then, the common legal risks of lessor will be enumerated and discussed in practical perspective. Finally, in order to improve legal risk prevention of lessor in financial leasing, suggestions that based on the existing laws and regulations will be proposed.