The Legal Protection Of The Lessor's Rights In Financial Leasing

Financial leasing is a kind of modern trade manner. It gradually becomes one of the most important financing mode following bank credit,because it meets the needs of the market through “financing assets” to realize the mode of “financing funds”. Finance lease contract consists of contracts for transaction and lease, and involves the legal relationship among the lessor, the seller and the lessee as well. In a contract for finance lease, the lessor lies in the core status by completely participating in the process of financial leasing transaction and burdening double duty.The complexity of the transaction structure brings great risk for the legal rights protection of the lessor. Due to the lack of specific finance lease legislation currently, this paper tends to start from the interpretation of“Contract Law”, “Civil Law” and relevant judicature concerning finance leases and studies the issue of legal rights protection of the lessor. This article, except the introduction and conclusion, is divided into five chapters. The structure is as follows:The first chapter starts with the concept of financial leasing. The basic concepts of financial leasing is introduced, civil and commercial law is used to analyze the legal relationship of finance leases, and the subjective & objective bodies, contract contents and mutual relations of rights and obligations are elaborated. The second chapter generalizes and analyzes the rights enjoyed by the lessor. The lessor's incomplete occupation to the ownership of leased property leads to the separation of people's rights from governing capacity, so the protection of the lessor's legal rights needs the functions of claims of obligatory rights and property request together. This paper mainly introduces the ownership,warranty against defect privilege of immunity, collection of rent and the right of recalling leasehold. The third chapter presents the reasons why the lessor's rights lean to be violated. The reasons include long lease term,the specificity of the leasehold and the risks brought by lessee's quiet possession. The fourth chapter discusses how to protect the lease's legal rights under four different situations respectively, namely, the bankrupt of the lessee, the acquisition of leasehold in good will by the third person,the invalid of finance lease contract and the expire of the lease. The fifth chapter is based on changes of new situation, exploring the protection of the lessor's legal rights, from the new angles of cooperating financial leasing and business factoring and trust.