Leases Flashcards
Lessor leased a car to Lessee. What would aid Lessor’s creditors in repossessing the car to satisfy Lessor’s debt?
Lessor’s creditors acquired a lien on the car before the lease.
What will allow a lessee’s creditors to seize leased property?
Lease is a disguised sale.
When can a sublessee prevail against the prime lessor if the lessee/sublessor defaults?
If the sublessor was entrusted with and leased the goods in the ordinary course of business.
When can a lessor assign rights of payment to a third party for a lease of goods?
Yes, a lessor has the right to assign payment if the lessor has fulfilled all significant affirmative duties under the contract.
According to Uniform Commercial Code (“UCC”) §2A, when is creating a sublease grounds for default on the prime lease?
When the sublease is a material violation of the prime lease contract.
Lessee has a finance lease with Bank on a car from Dealer. At the end of the lease, who owns the car?
Bank Owns.
When is a lease term allowing acceleration of the entire lease obligation at the will of the lessor enforceable?
When made in good faith.
