<\/p>\n
CHAPTER I – SPHERE OF APPLICATION AND GENERAL PROVISIONS<\/p>\n
Article 1<\/p>\n
1. – This Convention governs a financial leasing transaction as
\ndescribed in paragraph 2 in which one party (the lessor),<\/p>\n
(a) on the specifications of another party (the lessee), enters into
\nan agreement (the supply agreement) with a third party (the supplier)
\nunder which the lessor acquires plant, capital goods or other equipment
\n(the equipment) on terms approved by the lessee so far as they concern
\nits interests, and<\/p>\n
(b) enters into an agreement (the leasing agreement) with the lessee,
\ngranting to the lessee the right to use the equipment in return for the
\npayment of rentals.<\/p>\n
2. – The financial leasing transaction referred to in the previous
\nparagraph is a transaction which includes the following characteristics:<\/p>\n
(a) the lessee specifies the equipment and selects the supplier
\nwithout relying primarily on the skill and judgment of the lessor;<\/p>\n
(b) the equipment in acquired by the lessor in connection with a
\nleasing agreement which, to the knowledge of the supplier, either has
\nbeen made or is to be made between the lessor and the lessee; and<\/p>\n
(c) the rentals payable under the leasing agreement are calculated so
\nas to take into account in particular the amortisation of the whole or a
\nsubstantial part of the cost of the equipment.<\/p>\n
3. – This Convention applies whether or not the lessee has or
\nsubsequently acquires the option to buy the equipment or to hold it on
\nlease for a further period, and whether or not for a nominal price or
\nrental.<\/p>\n
4. – This Convention applies to financial leasing transactions in
\nrelation to all equipment save that which is to be used primarily for the
\nlessee’s personal, family or household purposes.<\/p>\n
Article 2<\/p>\n
In the case of one or more sub-leasing transactions involving the same
\nequipment, this Convention applies to each transaction which is a
\nfinancial leasing transaction and is otherwise subject to this Convention
\nas if the person from whom the first lessor (as defined in paragraph 1 of
\nthe previous article) acquired the equipment were the supplier and as if
\nthe agreement under which the equipment was so acquired were the supply
\nagreement.<\/p>\n
Article 3<\/p>\n
1. – This Convention applies when the lessor and the lessee have
\ntheir places of business in different States and:<\/p>\n
(a) those States and the State in which the supplier has its place of
\nbusiness are Contracting States; or<\/p>\n
(b) both the supply agreement and the leasing agreement are governed
\nby the law of a Contracting State.<\/p>\n
2. – A reference in this Convention to a party’s place of business
\nshall, if it has more than one place of business, mean the place of
\nbusiness which has the closest relationship to the relevant agreement and
\nits performance, having regard to the circumstances known to or
\ncontemplated by the parties at any time before or at the conclusion of
\nthat agreement.<\/p>\n
Article 4<\/p>\n
1. – The provisions of this Convention shall not cease to apply
\nmerely because the equipment has become a fixture to or incorporated in
\nland.<\/p>\n
2. – Any question whether or not the equipment has become a fixture
\nto or incorporated in land, and if so the effect on the rights inter se
\nof the lessor and a person having real rights in the land, shall be
\ndetermined by the law of the State where the land is situated.<\/p>\n
Article 5<\/p>\n
1. – The application of this Convention may be excluded only if each
\nof the parties to the supply agreement and each of the parties to the
\nleasing agreement agree to exclude it.<\/p>\n
2. – Where the application of this Convention has not been excluded
\nin accordance with the previous paragraph, the parties may, in their
\nrelations with each other, derogate from or vary the effect of any of its
\nprovisions except as stated in Articles 8(3) and 13(3)(b) and (4).<\/p>\n
Article 6<\/p>\n
1. – In the interpretation of this Convention, regard is to be had to
\nits object and purpose as set forth in the preamble, to its international
\ncharacter and to the need to promote uniformity in its application and
\nthe observance of good faith in international trade.<\/p>\n
2. – Questions concerning matters governed by this Convention which CHAPTER II – RIGHTS AND DUTIES OF THE PARTIES<\/p>\n Article 7<\/p>\n 1. – (a) The lessor’s real rights in the equipment shall be valid (b) For the purposes of this paragraph “trustee in bankruptcy” 2. – Where by the applicable law the lessor’s real rights in the 3. – For the purposes of the previous paragraph the applicable law is (a) in the case of a registered ship, the State in which it is (b) in the case of an aircraft which is registered pursuant to the (c) in the case of other equipment of a kind normally moved from one (d) in the case of all other equipment, the State in which the 4. – Paragraph 2 shall not affect the provisions of any other treaty 5. – This article shall not affect the priority of any creditor (a) a consensual or non-consensual lien or security interest in the (b) any right of arrest, detention or disposition conferred Article 8<\/p>\n 1. – (a) Except as otherwise provided by this Convention or stated in (b) The lessor shall not, in its capacity of lessor, be liable to (c) The above provisions of this paragraph shall not govern any 2. – The lessor warrants that the lessee’s quiet possession will not 3. – The parties may not derogate from or vary the effect of the 4. – The provisions of paragraphs 2 and 3 shall not affect any <\/p>\n Author: international<\/b><\/p>\n<\/p>\n Conventions: Chronological Index 1971-1990<\/a>, Private International Law<\/a>, Trade and Commercial Relations conventions<\/a>, Unidroit Convention on International Financial Leasing 2<\/a>, Unidroit Convention on International Financial Leasing 3<\/a>. <\/p>\n","protected":false},"excerpt":{"rendered":" Unidroit Convention on International Financial Leasing CHAPTER I – SPHERE OF APPLICATION AND GENERAL PROVISIONS Article 1 1. – This Convention governs a financial leasing transaction as described in paragraph 2 in which one party (the lessor), (a) on the specifications of another party (the lessee), enters into an agreement (the supply agreement) with […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[101,5,85],"tags":[220,221,222,223,155,224,225,226,227,228,229,230,231,232,233,234,235,236,237,238,239,240,241,242,243,244,245,246,247,248,249,250,251,252,253,254,255,256,257,258,259,260,261,262,263,264,265,266,267,268,269,270,271,272,273,216,274,275,276,277,278,279,280,281,282,283,284,285,286,287,288,289,290,291,292,293,294,295,296,297,298,299,300,301,302,303,304,305,306,307,308,309,310,311,312,313,314,315,316,317,318,319,320,321,322,323,324,325,326,327,328,329,330,331,332,333,334,335,336,337,338,339,340,341,342,343,344,345,346,347,348,349,350,86,74,76,351,352,353,354,355,356],"_links":{"self":[{"href":"https:\/\/lawin.org\/wp-json\/wp\/v2\/posts\/3680"}],"collection":[{"href":"https:\/\/lawin.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lawin.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lawin.org\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lawin.org\/wp-json\/wp\/v2\/comments?post=3680"}],"version-history":[{"count":0,"href":"https:\/\/lawin.org\/wp-json\/wp\/v2\/posts\/3680\/revisions"}],"wp:attachment":[{"href":"https:\/\/lawin.org\/wp-json\/wp\/v2\/media?parent=3680"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lawin.org\/wp-json\/wp\/v2\/categories?post=3680"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lawin.org\/wp-json\/wp\/v2\/tags?post=3680"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nare not expressly settled in it are to be settled in conformity with the
\ngeneral principles on which it is based or, in the absence of such
\nprinciples, in conformity with the law applicable by virtue of the rules
\nof Private International Law<\/a> .<\/p>\n
\nagainst the lessee’s trustee in bankruptcy and creditors, including
\ncreditors who have obtained an attachment or execution.<\/p>\n
\nincludes a liquidator, administrator or other person appointed to
\nadminister the lessee’s estate for the benefit of the general body of
\ncreditors.<\/p>\n
\nequipment are valid against a person referred to in the previous
\nparagraph only on compliance with rules as to public notice, those rights
\nshall be valid against that person only if there has been compliance with
\nsuch rules.<\/p>\n
\nthe la of the State which, at the time when a person referred to in
\nparagraph 1 becomes entitled to invoke the rules referred to in the
\nprevious paragraph, is :<\/p>\n
\nregistered in the name of the owner (for the purposes of this
\nsub-paragraph a bareboat charterer is deemed not to be the owner);<\/p>\n
\nConvention on International Civil Aviation done at Chicago on 7 December
\n1944, the State in which it is so registered;<\/p>\n
\nState to another, including an aircraft engine, the State in which the
\nlessee has its principal place of business;<\/p>\n
\nequipment is situated.<\/p>\n
\nunder which the lessor’s real rights in the equipment are required to be
\nrecognised.<\/p>\n
\nhaving:<\/p>\n
\nequipment arising otherwise than by virtue of an attachment or execution,
\nor<\/p>\n
\nspecifically in relation to ships or aircraft under the law applicable by
\nvirtue of the rules of Private International Law<\/a> .<\/p>\n
\nthe leasing agreement, the lessor shall not incur any liability to the
\nlessee in respect of the equipment save to the extent that the lessee has
\nsuffered loss as the result of its reliance on the lessor’s skill and
\njudgment and of the lessor’s intervention in the selection of the
\nsupplier or the specifications of the equipment.<\/p>\n
\nthird parties for death, personal injury or damage to property caused by
\nthe equipment.<\/p>\n
\nliability of the lessor in any other capacity, for example as owner.<\/p>\n
\nbe disturbed by a person who has a superior title or right, or who claims
\na superior title or right and acts under the authority of a court, where
\nsuch title, right or claim is not derived from an act or omission of the
\nlessee.<\/p>\n
\nprovisions of the previous paragraph in so far as the superior title,
\nright or claim is derived from an intentional or grossly negligent act or
\nomission of the lessor.<\/p>\n
\nbroader warranty of quiet possession by the lessor which is mandatory
\nunder the law applicable by virtue of the rules of private international
\nlaw.<\/p>\nConclusion<\/h3>\n<\/div>\n
Notes<\/h3>\n<\/div>\n
See Also<\/h3>\n<\/div>\n
References and Further Reading<\/h3>\n<\/div>\n
About the Author\/s and Reviewer\/s<\/h3>\n<\/div>\n
Mentioned in these Entries<\/h3>\n