The obligations of the lessee in the financial leasing contract - a study in Federal Law No. 8 of 2018.

Document Type : Original Article

Author

College of Law - University of Sharjah

Abstract

The study provides an overview of the financial lease contract and the key obligations placed on the financial lessee under UAE Law No. (8) of 2018. It begins by examining the lessee's responsibility for lease rental payments, defining rental terms, critical criteria for rental amounts, and guarantees for death under the law. The study also explores the guarantees that the lessor can include through mutual agreement with the lessee. Subsequently, it delves into the material obligations of the financial lessee, focusing on the commitment to using the leased asset for its intended purpose and responsibilities for maintenance and renovation. It discusses the UAE legislator's perspective on both ordinary and substantial maintenance. Moving forward, it addresses the moral obligations of the financial lessee, highlighting prohibited actions and the UAE legislator's stance on them. This includes the lessee's right to transfer ownership of the leased asset, restrictions on such transfers, and the transfer of benefits to third parties. The study also examines the lessee's responsibility for civil liability in cases of building demolition and liability for items. Lastly, it discusses the lessee's obligation to return the leased asset in good condition at the agreed location if they choose not to exercise the purchase option or renew the lease for a new term.

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