Is Dealership Agreement
The following instructions are given to deal with cases where the asset is acquired under or on the so-called lease-sale contract:- The transaction participates in a contract or lease with a purchase element added to it. In such an agreement, the owner of the goods, so that they have no rent for regular payments by the tenant by appointment that, if a certain number of payments by the tenant according to an agreement that, if a certain number of payments have been made, the absolute ownership of the goods will go to the tenant, but so that the tenant can pay the goods at any time without having to pay the rest of the rent after the return; Until the conditions are met, the property remains with the owner. In this agreement, the tenant is not obliged to buy the rented thing, he has an option, he cannot or cannot buy. But in both cases, if there is an obligation to purchase or an option to purchase, the merchandise delivered to the landlord by the landlord on the terms that the tenant on payment of a premium as well as a number of payments the use of the goods, which can eventually become his property, the transaction is to one of the rent buyers , even if the property of the goods remains to the property of the owner and then transferred to the tenant if an event that all agreed tranches were paid or that the tenant used his option of closing the purchase with payment of a nominal amount or otherwise. [Temperament Supply (P) Ltd v Union of India, AIR 1962 SC 53, 58: Sundaram Finance Ltd. v. State of Kerala, AIR 1966 SC 1178]. In some cases, indeterminate contracts may be terminated in the absence of a clause authorizing such a right with appropriate termination. In some cases, the courts were prepared to find a tacit clause authorizing the termination of a contract without cause. The Ontario Court of Appeal held that a court could treat an indeterminate or indeterminate contract with a tacit unilateral termination right with a tacit unilateral termination right if the duration of a contract is not determined and there is no provision for termination of the contract. In the latter case, any party may terminate the contract if it informs the other party. How the court determines what is “reasonable” depends to a large extent on the facts of each situation.
In making this finding, the court must take into account the following clauses.-When developing a lease-sale agreement, it is necessary to ensure that the following important clause is duly developed in the agreement; ii Rental-Buy-Contract not Sale.-It should be noted that a lease-purchase agreement is not a sale, even if it contains a provision in the form of the tenant`s option to purchase the leased item.