GRP Rainer LLP

Exclusion of the Lessor's Contractual Liability Under a Leasing Contract - Leasing Law

If the lessor’s contractual liability is excluded by transferring the legal warranty claims to the supplier, the lessor has certain special obligations.


Cologne, NRW -- (SBWIRE) -- 10/17/2013 -- GRP Rainer Lawyers and Tax Advisors in Cologne, Berlin, Bonn, Bremen, Dusseldorf, Essen, Frankfurt, Hamburg, Hanover, Munich, Nuremberg, Stuttgart and London – conclude: In its judgment of March 27, 2013 (File number 25 U 59/12), the Superior Court (Kammergericht – KG) of Berlin has ruled that when the lessor’s contractual liability is excluded by transferring the legal warranty claims to the supplier, the lessor must either exclude his obligation to report defects to the supplier or effectively inform the lessee about this obligation to report defects. Otherwise, the lessor may be obligated to pay compensation to the lessee. In that case, the lessor would have to place the lessee into a position where he can observe the obligation to examine the assets and report defects.

Leasing is a form of contract where the lessor procures an asset which he completely finances. He then makes this asset available for the lessee’s independent use against regular payment of a smaller monthly amount. This is called the transfer of use against payment. A leasing contract is closely related to rental law.

However, a leasing contract differs from a rental agreement in that in addition to the transfer of use, the contractually agreed maintenance and repair costs and any warranty claims are also transferred to the lessee.

The differences compared to a normal rental agreement show the complexity of leasing law. There are not only two participating parties as in rental law, but in addition to the contracting parties (lessor and lessee) there is a third participant: the manufacturer of the leased asset.

Difficulties can arise, for example, when a leasing contract has to be unravelled in case the leased asset shows material defects.

This alone is enough reason why competent legal help is needed in the formulation and examination of an offered contract even before a leasing contract is signed. A lawyer with experience in leasing law can help to formulate such contracts from the beginning to ensure that they will stand up to the later scrutiny by a court.

About GRP Rainer, LLP
GRP Rainer LLP is an international firm of lawyers and tax advisors who are specialists in commercial law. The firm counsels commercial and industrial companies and corporations, as well as associations, small- and mid-sized businesses, self-employed freelancers and private individuals worldwide from offices Cologne, Berlin, Bonn, Dusseldorf, Essen, Frankfurt, Hamburg, Hannover, Munich, Stuttgart, Bremen, Nuremberg and London UK.

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