Article 753
If the lessee transfers, mortgages, pledges, invests in shares or otherwise disposes of the leased property without the consent of the lessor, the lessor may terminate the financial lease contract.
I. Purpose of this Article
This article is about the lessee's improper disposal of the leased property, the lessor may terminate the financial lease contract.
II. Evolution of the Provisions
This article is a new legal article.
3. Interpretation of Provisions
This article is a provision for the lessor's statutory right of rescission.
In the financial lease contract, the lessee has the right to possess, use and benefit from the leased property, and the lessor shall guarantee it. However, the lessee does not have the right to dispose of the leased property, and if the lessee exercises the right to dispose of the leased thing, it is an infringement of the lessor's ownership of the leased property. Therefore, this article stipulates that once the lessee disposes of the leased property without the consent of the lessor, such as transferring, mortgaging, pledging, investing in shares or otherwise disposing of the leased thing, it not only infringes the lessor's ownership rights, but also constitutes a fundamental breach of contract.
4. Cases
Tongling Dajiang Investment Holdings Co., Ltd., Tongling Development Investment Group Co., Ltd., Wanjiang Financial Leasing Co., Ltd., et al. guarantee contract dispute
Facts: On September 27, 2012, the plaintiff Wanjiang Leasing Company and Haorong Electronics Company signed the Asset Transfer Contract and the Financial Lease Contract No. 0201. With regard to the question of whether Haorong Electronics Company's act of mortgaging part of the leased property during the performance of the Financial Lease Contract affected Wanjiang Leasing Company's claim for rights, Tongling Dajiang Company held that the fact of mortgage caused Wanjiang Leasing Company to lose its ownership of the leased property, so it had no right to collect rent, and then could not claim guarantee liability from Tongling Development Company. Paragraph 1 of Article 12 of the Interpretation of the Supreme People's Court on Issues Concerning the Application of Law in the Trial of Cases Involving Disputes over Financial Leasing Contracts stipulates that "if the lessee transfers, subleases, mortgages, pledges, invests in shares or otherwise disposes of the leased property without the consent of the lessor", "if the lessor requests to terminate the financial lease contract, the people's court shall support it". It can be seen that in this case, Wanjiang Leasing Company does not lose the ownership of the leased property, but enjoys the right to terminate the contract in accordance with the law, and has the right to request Haorong Electronics Company to bear the corresponding repayment liability in accordance with Article 17.3 of the Financial Lease Contract. Since Tongling Development Company undertook in the Guarantee Contract that Haorong Electronics Company would "bear joint and several guarantee liability for all debts" of Wanjiang Leasing Company under the Financial Leasing Contract, Wanjiang Leasing Company's claim against Tongling Development Company for guarantee liability under the condition that Haorong Electronics Company failed to perform the contract as scheduled was in line with the contract. This proposition of Tongling Dajiang Company has no basis in law and is not accepted by this court.
5. Analysis
After the signing of the Financial Lease Contract between Wanjiang Leasing Company and Haorong Electronics Company, Haorong Electronics Company mortgaged the leased items listed in the List of Leased Objects to others for many times and went through registration, and did not release the mortgage registration, because the mortgage of the leased items was without the consent of Wanjiang Leasing Company, and the Financial Lease Contract constituted a statutory condition for termination.