Leasing is used by many private individuals or companies for the use and purchase of cars, miscellaneous equipment or other property. In Russia, most leasing companies prefer to work specifically with enterprises, for which a formal leasing agreement is necessarily drawn up. It indicates all conditions of cooperation, describes the subject of the agreement, and also specifies the size and method of transferring payment. At the same time, the moment necessarily comes when termination of the lease agreement is required. The procedure can occur at a specified time or ahead of schedule. In the second case, objective reasons for the implementation of this process are required.
Concept of contract
Leasing is considered a demanded and optimal service of specialized companies. For recipients, it is possible without the necessary amount of funds to purchase various equipment or vehicles. They are paid uniform monthly payments. The subject of leasing can be not only a machine, but also various equipment for the operation of the enterprise. If necessary, it will be possible to redeem such property at a residual value.
The features of using this method of acquiring property include:
- the owner remains the leasing company, so it is she who bears the costs associated with the maintenance, repair or purchase of an insurance policy;
- for each side, the advantage of drafting such an agreement is the possibility of early termination of the leasing agreement without additional fees or problems for each participant;
- rules for termination of the contract are prescribed in the text of the document.
After the termination of the agreement, the lessee repays the debt, and he also returns the property received to the leasing company.
Reasons for termination of cooperation
There are various reasons for terminating a lease agreement. The initiator may be a leasing company or a lessee. For the peace process to take place, there really must be good reasons. Typically, termination of financial leasing relationships is due to the following reasons:
- the client refuses to pay leasing services on the basis of the contract;
- repair is not carried out by the owner of the property, but it is necessary that this requirement is prescribed in the leasing agreement;
- there are other reasons specified in the agreement.
If the company that bought the car declares itself bankrupt, then the contract is terminated with it, and in the next 5 years, the owners of this company will not be able to sign a similar agreement.
The nuances of the termination of cooperation by the recipient
Often situations arise when the leasing contract is terminated by the lessee. There may be various reasons for this:
- in a timely manner, the lessor did not transfer the property, and there is evidence that he did not have good reasons for this;
- the lessee does not repair the property received, although under the terms of the contract it is he who must carry out this process;
- property after a certain period of use is deemed unusable, therefore, the lessee cannot continue to use it for any purpose.
In these cases, early termination of the lease agreement occurs. The recipient must transfer the property to the owner, after which the cooperation is terminated.Certain aspects of this process are discussed by two parties.
The nuances of termination of the contract by the lessor
There may be situations when it is the lessor who insists on the termination of cooperation. In this case, the termination of the contract occurs when the following reasons arise:
- there are no transfers from the recipient of the property for a long time, therefore, the requirements in the payment schedule are not observed by him;
- the recipient transfers certain property on the basis of sub-leasing, which is prohibited by the contract;
- intentionally or accidentally carried out by the recipient of the property special actions leading to the deterioration of the subject of the contract;
- problems that were discovered by the owner of the property within a specific time period are not resolved;
- repair is not made by the lessee in a strictly specified period of time.
Under such conditions, the owner of the property has the right to pick up the provided item, therefore, the lessee does not have the opportunity to redeem it at the residual value.
Termination of agreement by agreement of the parties
Another way to terminate the relationship between the two parties is to draw up a special agreement in which both parties agree to terminate the contract.
When drafting this document, both participants can make different amendments to it. If for some reason they cannot reach an agreement, then each party can refuse a peaceful way to terminate the contract for which financial leasing is offered.
Contract expiration
The relationship between the two parties is most often terminated based on the termination of the agreement. This period is clearly specified in the leasing agreement for legal entities or individuals. The rules of this process include:
- a company that does not want the contract to be prolonged should contact the lessee a few days before the deadline;
- the company or citizen is notified that cooperation will be terminated;
- the client returns the property to the lessor;
- if a lessee makes a decision to buy equipment or a car, then it is required to transfer to the leasing company the corresponding amount of money equal to the residual value of the property;
- the client signs the necessary contract and invoice for payment;
- after completed operations, the property becomes the property of the client of the leasing organization.
Under these conditions, the recipient independently decides whether he will keep the property or not.
Unreasonable enrichment
Such a situation arises if the lessee receives money through the use of property in violation of the leasing agreement or Russian law. The direct lessor may also be a violator. Unreasonable enrichment is revealed by both the company and the recipient, after which termination of the contract is required. The procedure is accompanied by certain nuances. These include:
- if the recipient is the initiator, then lease payments must be returned upon termination of the lease agreement;
- not only all received monthly payments are returned, but even an advance;
- the client returns property to the company.
If the owner of the property is the offender, then he is held liable. Such situations include leasing of arrested cars. The sale of such property is illegal.
If the requirements of the parties are ignored, serious negative consequences may appear for each participant in the transaction. This is due to the fact that government agencies are involved in conducting checks against organizations and individuals.
How is the contract terminated?
The procedure can be performed in different ways, since it depends on what is available for this reason.The most commonly used peaceful procedure for terminating a lease agreement. Under such conditions, the following steps are performed:
- The parties to the deal reach an agreement.
- Additional papers to the contract are signed.
- An acceptance certificate for the leased asset is drawn up and signed.
If the parties cannot reach a compromise, then the following actions are carried out by one of the parties that wants to terminate the contract:
- the contractor will be sent a written request stating the requirement to terminate the contract;
- if the necessary actions are not performed by the other party, then a notice is drawn up on the termination of the agreement;
- after this, a lawsuit is filed, and for this a court is selected located at the place of registration of the violator of the contract.
You must go to court only if there are significant grounds for terminating the contract. Additionally, the plaintiff must have evidence that he has completed all the necessary steps to try to resolve the differences in a peaceful manner.
The nuances of early termination
Most often, unilateral termination of a lease agreement occurs ahead of schedule. There may be various reasons for this:
- the main terms of the contract signed by both parties are violated;
- due to the poor attitude of the lessee to the property, its significant damage occurs;
- the client does not pay payments under the contract in a timely manner, and such a violation should be recorded within a few months;
- the requirement to repair property is ignored, if specified in the contract.
The procedure for early termination of the contract is implemented on the basis of the provisions of Art. 450 and Art. 619 Civil Code. However, there are no specific nuances of this process.
Going to court
If really significant breaches of the contract by the second party are revealed, then to terminate the agreement you will have to resort to the help of the court. Moreover, there must be evidence of damage to property, so the owner can no longer use the leased asset for any purpose. Appeal to court is required under the following conditions:
- the lessee uses the subject of the contract with violations, and he must be warned about the consequences by the second party several times;
- property characteristics deteriorate over time due to inaccurate or improper handling;
- no payments under the contract;
- property is not repaired within the established time frame.
Under such conditions, the lessor may terminate the contract. If the second side refuses to use the peaceful method, then you have to go to court.
Often, even the receiver acts as the plaintiff if it is revealed to them that the arrested car was leased. Selling encumbered property is an illegal activity, therefore a leasing company may be held liable through a court.
How is a contract terminated by consent?
If both parties to the transaction agree to terminate the relationship, then they are not required to use the help of third parties or organizations. For this, an agreement is made to terminate the lease agreement. This document contains the following information:
- name of the parties;
- basic information about the parties to the transaction is indicated;
- the number of the leasing agreement and the date of its formation;
- It states what obligations participants have;
- fit the grounds for termination of the contract;
- rules are given on the basis of which the parties will make settlements;
- at the end are signed by the participants.
This document is compiled exclusively in duplicate, since each party to the transaction must have its own copy of the agreement.
Nuances of termination of the contract due to loss of property
Often, for various reasons, the leased asset is destroyed.For example, if a car is indicated in the contract, then the recipient can break the vehicle in an accident. The car can be stolen. Under such conditions, the leased asset is destroyed or lost. It is the recipient who must ensure that the property remains intact, and numerous risks are included in the contract.
It is allowed that different information be spelled out in the contract, therefore, often the lessee is exempt from liability if his fault is missing. Under such conditions, losses are covered by the insurance company. Therefore, usually leasing firms require the purchase of a CASCO policy, which includes numerous possible risks.
But usually the recipient of the property is responsible for its destruction. In this case, he must continue to pay the leasing company pre-agreed payments, and also pays an amount equal to the residual value of the property.
Often, leasing companies themselves buy insurance policies for the duration of the agreement. In this case, both parties to the agreement are protected from various unforeseen situations when property can be destroyed. But even under such conditions, often insurance compensation does not fully cover the cost of the destroyed item. Therefore, the lessee will still have to partially pay the other party to the agreement funds to cover losses.
What documents are required?
If the leasing agreement for legal entities or private clients is terminated, certain documents must be prepared for this. These include:
- direct leasing agreement;
- correct calculation of payments due;
- amount of accrued fines;
- passport of property and other papers on it;
- if the contract is terminated on the basis of a court decision, an appropriate resolution is required;
- if there are claims to the other side, all these requirements should be written on a separate sheet;
- if the parties are legal entities, then their constituent papers are prepared by them.
Other documents may be required if necessary.
The nuances of returning lease payments
If the contract is terminated prematurely, the leased asset is transferred to the direct owner, if this does not contradict the requirements of the existing agreement. At the same time, there may be a refund of payments for serious reasons, when the lessor specifically for a long time violates his obligations under the contract. He cannot immediately take his property, since, according to the law, the process must take place in several consecutive actions. If there is no opportunity to agree in a peaceful way, you will have to go to court.
Conclusion
A lease agreement is considered a demanded agreement, with the help of which it is possible to use valuable property by paying monthly low payments for it. The subject of leasing can be redeemed. Often there is a need to terminate a previously drawn up agreement. The initiator may be both the lessor and the lessee.
The procedure can be implemented peacefully or with the involvement of the court. There may be several reasons for terminating a contract that are proven in court. In this case, compensation may be recovered from the guilty party.