Saturday, 03 June 2023
Vehicle leasing is the leasing (or the use) of a motor vehicle for a fixed period of time at an agreed amount of money for the lease. It is commonly offered by dealers as an alternative to vehicle purchase but is widely used by businesses as a method of acquiring (or having the use of) vehicles for business, without the usually needed cash outlay. Leasing activity is a type of investment activity for the acquisition of property and leasing it.
The subjects of the leasing agreement are:
The lessor is a natural or legal person who, at the expense of borrowed or own funds acquires property in the course of a leasing transaction and lends it as a leased asset to a lessee for a specified fee, for a certain period of time and under certain conditions for temporary possession and use with transition or without transferring to the lessee the title to the leased asset.
The lessee is a natural or legal person who, in accordance with the leasing agreement, is required to accept the leased asset for a specified fee, for a certain period and under certain conditions for temporary possession and use in accordance with the leasing agreement.
The seller (supplier) is a legal entity with whom the Lessor concludes the contract of sale and acquires the leasing object specified by the Lessee.
A few more basic concepts:
The leasing agreement is a civil law contract whereby the Lessor undertakes to acquire the property of the Lessee specified by the Lessee from the Supplier specified by it and to provide this property to the Lessee for payment in temporary possession and use for business purposes.
The subject of leasing is any non-consumable items, including enterprises and other property complexes, buildings, structures, equipment, vehicles and other movable and immovable property that can be used for entrepreneurial activities. The subject of leasing cannot be land plots and other natural objects, as well as property that are prohibited by the laws of the Republic of Tajikistan for free circulation or for which a special procedure for treatment is established. The leased asset, transferred to the temporary possession and use of the Lessee, is the property of the Lessor. The right to own and use the subject of leasing shall be transferred to the Lessee in full, unless otherwise provided by the leasing agreement. The right of the lessor to dispose of the leased asset includes the right to withdraw the leased asset from possession and use from the Lessee in the cases and in the manner prescribed by the law of the Republic of Tajikistan and the Leasing Agreement. The leased asset transferred to the Lessee under a financial lease agreement is recorded on the balance sheet of the Lessor or the Lessee by agreement of the parties.