Analysis On The Rationality Of Causes For The Termination Of Financial Leasing Contract In China

The transaction caused by financial leasing is not a new concept.However as the the contract of financial leasing is irrevocable,it’s more difficult to terminate this contract comparing to other types of contracts.Thus the necessity to conduct an in-depth study on this topic is highly requested as there has been insufficient research on the related topics,forexample,the validity of the reasons to terminate the financial leasing contract is still a controversial issue.This rationality analysis should be based on its unresolved nature,combining with the less developed circumstance of financial leasing in China as well as the new forms of financial leasing transactions.The conclusions should be made after analyzing the impact occurred on both parties caused by terminating the contract.Basically,the validity of the reasons to terminate the contract in current regulations should be agreed.The reasons put forward by both parties to terminate the contract should be considered.The fact that the lessor terminate the contracts due to the serious breach of the occupancy obligation by the lessee should be supported.However,this should be done based on the non-conflict situation between the contract termination regulations and the risk conflicts regulations,with improving legal languages.When the lessee has no right to dispose the leased property,the lessor should classify the influences of the ownership after enumerating the similar provisions and affirming its rationality.The termination of bankruptcy should be classified based on the leasing’s ownership on the end date and the specific bankruptcy procedure.Then the conclusion can be made on how prioritize the lessor and the lesse’s right,while the bankruptcy suspension theory should not be solely used on the termination of bankruptcy.There are three innovative ideas in this study.First of all,the methodology of classification analysis was implemented,through which the impact of new forms of financial leasing transactions was analyzed,and this was never studied by previous scholars.Second,the thesis validated certain reasons to terminate the financial leasing contract,with comprehensive consideration of its irrevocable nature and the financial leasing environment in China.Thirdly,the study provided a resolution to the situation when the risk burden rule conflicts with the contract termination rule.It also considered its own risk other than the price risks.