Cases on Leasing

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Leading cases on leasing

We list below some leading case law on leasing culled from around the World. Contributions to this page will be appreciated with credit. Please write for contributions or comments to vinodk@vsnl.com.

Recent additions:

Bellinz Pty Ltd & Ors v Commissioner of Taxation [1998] 615 FCA (10 June 1998) (Federal Court of Australia)

K. L. JOHAR & CO. VS. DEPUTY COMMERCIAL TAX OFFICER, COIMBATORE (Supreme Court of India)

V. DAKSHINAMURTHY MUDALIAR vs. GENERAL AND CREDIT CORPORATION (INDIA) LTD.(Madras High Court)

CAPITAL ALLOWANCES - see under DEPRECIATION

CONDITIONAL SALE

See also HIRE PURCHASE

OPTION TO BUY AT MARKET VALUE - whether would make a lease a case of conditional sale - [1995] 2 S.C.R. Mitsui & Co. (Canada) Ltd. v. Royal Bank of Canada187 (Supreme Court of Canada)

DAMAGES- upon termination of hiring/lease

STIPULATION IN CONTRACT FOR BALANCE OF FUTURE INSTALMENTS DULY REBATED - whether proper estimate of damages or a mere penalty clause - meaning of "damages" -whether Courts would normally accept the clause agreed by the parties - ESANDA FINANCE CORPORATION LTD v. PLESSNIG and ANOTHER (1989) 166 CLR 131 F.C. (High Court of Australia)

DEFECTIVE GOODS - whether lessor liable

WHETHER LESSOR LIABLE FOR LEASE OF DEFECTIVE PHOTOCOPIER, though bought at the behest of the lessee - Credit Corp (Malaysia) Bhd v KM Basheer Ahamed & Anor [1985] 1 MLJ 208 Federal Court, Kuala Lumpur (Abdul Hamid CJ (Malaysia).

DEPRECIATION - in case of hire-purchase transactions:

A certain estate was obtained by lessee partnership under a lease containing an option to buy, and sub-leased to the original owner - whether the lessee having an option to buy to be treated as "beneficial owner" and allowed depreciation on the asset- held no Bellinz Pty Ltd & Ors v Commissioner of Taxation [1998] 615 FCA (10 June 1998) (Federal Court of Australia)

FINANCING TRANSACTION OR HIRE-PURCHASE

Nature of a hire-purchase transaction as distinct from a financial transaction analyzed - English and American law on the subject reviewed - hire-purchase held to be bailment with an option to buy - V. DAKSHINAMURTHY MUDALIAR vs. GENERAL AND CREDIT CORPORATION (INDIA) LTD.(Madras High Court)

HIRE-PURCHASE - depreciation allowance

A certain estate was obtained by lessee partnership under a lease containing an option to buy, and sub-leased to the original owner - whether the lessee having an option to buy to be treated as "beneficial owner" and allowed depreciation on the asset- held no Bellinz Pty Ltd & Ors v Commissioner of Taxation [1998] 615 FCA (10 June 1998) (Federal Court of Australia)

HIRE-PURCHASE - legal nature of

See also: CONDITIONAL SALE

OPTION TO BUY - whether option to buy goods similar to those hired out will also make an agreement, described as lease agreement, a regulated hire-purchase agreement - KAY'S LEASING CORPORATION PTY. LTD. v. FLETCHER (1964) 116 CLR 124 (High court of Australia)
OPTION TO BUY AT MARKET VALUE - whether would make a lease a case of conditional sale - [1995] 2 S.C.R. Mitsui & Co. (Canada) Ltd. v. Royal Bank of Canada187 (Supreme Court of Canada)

WHETHER AKIN TO A "SALE" - legal nature of a hire-purchase transaction as a bailment coupled with an option to buy analyzed - whether a hire-purchase to be construed as a sale at the time of delivery goods or at the time of exercise of the option to buy - K. L. JOHAR & CO. VS. DEPUTY COMMERCIAL TAX OFFICER, COIMBATORE (Supreme Court of India)

HIRE-PURCHASE OR FINANCING TRANSACTION

See under FINANCING TRANSACTION

HIRE-PURCHASE - termination of

TERMINATION OF HIRING - STIPULATION IN CONTRACT FOR BALANCE OF FUTURE INSTALMENTS DULY REBATED - whether proper estimate of damages or a mere penalty clause - meaning of "damages" -whether Courts would normally accept the clause agreed by the parties - ESANDA FINANCE CORPORATION LTD v. PLESSNIG and ANOTHER (1989) 166 CLR 131 F.C. (High Court of Australia)

HIRING - termination of

TERMINATION OF HIRING - STIPULATION IN CONTRACT FOR BALANCE OF FUTURE INSTALMENTS DULY REBATED - whether proper estimate of damages or a mere penalty clause - meaning of "damages" -whether Courts would normally accept the clause agreed by the parties - ESANDA FINANCE CORPORATION LTD v. PLESSNIG and ANOTHER (1989) 166 CLR 131 F.C. (High Court of Australia)

HYPOTHECATION AND HIRE-PURCHASE:

Nature of a hire-purchase transaction as distinct from a financial transaction analyzed - English and American law on the subject reviewed - hire-purchase held to be bailment with an option to buy - V. DAKSHINAMURTHY MUDALIAR vs. GENERAL AND CREDIT CORPORATION (INDIA) LTD.(Madras High Court)

LEASE - with an option with the lessee to buy the goods:

A certain estate was obtained by lessee partnership under a lease containing an option to buy, and sub-leased to the original owner - whether the lessee having an option to buy to be treated as "beneficial owner" and allowed depreciation on the asset- held no Bellinz Pty Ltd & Ors v Commissioner of Taxation [1998] 615 FCA (10 June 1998) (Federal Court of Australia)

LEASE - lessor's liability for defects in goods:

WHETHER LESSOR LIABLE FOR LEASE OF DEFECTIVE PHOTOCOPIER, though bought at the behest of the lessee - Credit Corp (Malaysia) Bhd v KM Basheer Ahamed & Anor [1985] 1 MLJ 208 Federal Court, Kuala Lumpur (Abdul Hamid CJ (Malaysia).

LEASE - termination of

TERMINATION OF HIRING OR LEASE - STIPULATION IN CONTRACT FOR BALANCE OF FUTURE INSTALMENTS DULY REBATED - whether proper estimate of damages or a mere penalty clause - meaning of "damages" -whether Courts would normally accept the clause agreed by the parties - ESANDA FINANCE CORPORATION LTD v. PLESSNIG and ANOTHER (1989) 166 CLR 131 F.C. (High Court of Australia)

LEASE - whether true lease or mere financing agreement

Whether on facts, the agreement in present case was a true lease or a cover for financing on security of goods - Tan Chin Kim Sawmill and Factory Sdn Bhd & Anor v Lindeteves-Jacoberg (M) Sdn Bhd & Anor [1980] 2 MLJ 204 High Court, Ipoh (Abdoolcader J). (Malaysia)

LESSOR - liability for defects in leased goods

WHETHER LESSOR LIABLE FOR LEASE OF DEFECTIVE PHOTOCOPIER, though bought at the behest of the lessee - Credit Corp (Malaysia) Bhd v KM Basheer Ahamed & Anor [1985] 1 MLJ 208 Federal Court, Kuala Lumpur (Abdul Hamid CJ (Malaysia).

OPTION TO BUY - meaning of:

OPTION TO BUY WITH LESSEE IN CASE OF A LEASE - A certain estate was obtained by lessee partnership under a lease containing an option to buy, and sub-leased to the original owner - whether the lessee having an option to buy to be treated as "beneficial owner" and allowed depreciation on the asset- held no Bellinz Pty Ltd & Ors v Commissioner of Taxation [1998] 615 FCA (10 June 1998) (Federal Court of Australia)
OPTION TO BUY - whether option to buy goods similar to those hired out will also make an agreement, described as lease agreement, a regulated hire-purchase agreement - KAY'S LEASING CORPORATION PTY. LTD. v. FLETCHER (1964) 116 CLR 124 (High court of Australia)
OPTION TO BUY AT MARKET VALUE - whether would make a lease a case of conditional sale - [1995] 2 S.C.R. Mitsui & Co. (Canada) Ltd. v. Royal Bank of Canada187 (Supreme Court of Canada)
RESIDUAL VALUE CLAUSE IN DOCUMENTS - WHETHER IMPLIES AN OPTION TO BUY - whether existence of a residual value clause in the offer documents implies the lessee has been given an option to buy the asset- COPYTIME PTY LIMITED AND ACTION LEASING PTY LIMITED; PORTFOLIO LEASING AUSTRALIA LIMITED; CHRISTOPHER JOHN FLETCHER; PORTFOLIO LEASING AUSTRALIA LIMITED; COPYTIME PTY LIMITED AND COLIN WILLIAM ROHDE (Australia)

WHETHER WOULD EQUATE HIRE-PURCHASE TO A "SALE" - legal nature of a hire-purchase transaction as a bailment coupled with an option to buy analyzed - whether a hire-purchase to be construed as a sale at the time of delivery goods or at the time of exercise of the option to buy - K. L. JOHAR & CO. VS. DEPUTY COMMERCIAL TAX OFFICER, COIMBATORE (Supreme Court of India)

RESIDUAL VALUE

WHETHER IMPLIES AN OPTION TO BUY - whether existence of a residual value clause in the offer documents implies the lessee has been given an option to buy the asset- COPYTIME PTY LIMITED AND ACTION LEASING PTY LIMITED; PORTFOLIO LEASING AUSTRALIA LIMITED; CHRISTOPHER JOHN FLETCHER; PORTFOLIO LEASING AUSTRALIA LIMITED; COPYTIME PTY LIMITED AND COLIN WILLIAM ROHDE (Australia)

SALE - WHETHER A HIRE-PURCHASE A "SALE"

WHETHER HIRE-PURCHASE AKIN TO A "SALE" - legal nature of a hire-purchase transaction as a bailment coupled with an option to buy analyzed - whether a hire-purchase to be construed as a sale at the time of delivery goods or at the time of exercise of the option to buy - K. L. JOHAR & CO. VS. DEPUTY COMMERCIAL TAX OFFICER, COIMBATORE (Supreme Court of India)

SECURED FINANCING OR HIRE-PURCHASE:

Nature of a hire-purchase transaction as distinct from a financial transaction analyzed - English and American law on the subject reviewed - hire-purchase held to be bailment with an option to buy - V. DAKSHINAMURTHY MUDALIAR vs. GENERAL AND CREDIT CORPORATION (INDIA) LTD.(Madras High Court)

TERMINATION OF LEASE/ HIRE

TERMINATION OF HIRING - STIPULATION IN CONTRACT FOR BALANCE OF FUTURE INSTALMENTS DULY REBATED - whether proper estimate of damages or a mere penalty clause - meaning of "damages" -whether Courts would normally accept the clause agreed by the parties - ESANDA FINANCE CORPORATION LTD v. PLESSNIG and ANOTHER (1989) 166 CLR 131 F.C. (High Court of Australia)

TRUE LEASE OR FINANCING AGREEMENT:

Whether on facts, the agreement in present case was a true lease or a cover for financing on security of goods - Tan Chin Kim Sawmill and Factory Sdn Bhd & Anor v Lindeteves-Jacoberg (M) Sdn Bhd & Anor [1980] 2 MLJ 204 High Court, Ipoh (Abdoolcader J). (Malaysia)