Leasing law

Leasing law includes those regulations that concern the legal structure of leasing contracts or relate to leasing transactions.

There is no legal definition for the term leasing in leasing law. It is a special form of rent/lease. The most common form of leasing in leasing law is the so-called finance leasing.

With finance leasing, the lessor (e.g. bank) buys a leased object (e.g. car) under leasing law and gives it to the lessee (e.g. consumer) for use for a period of time, during which the lessee pays the leasing installments in return, and at the end of the term for a residual value of the leasing property. In leasing law, the lessee is often granted a purchase option at the end of the term. In leasing law, the lessor usually concludes his warranty liability towards the lessee by assigning his warranty rights to the third party. In leasing law, this is generally permitted in general terms and conditions.

The legal framework of leasing contracts is not independently standardized in leasing law, but is essentially based on the general provisions of the Civil Code. Finance leasing is an atypical rental agreement in leasing law (Sections 535 ff. of the German Civil Code (BGB) apply analogously), since, just like renting, temporary use is owed. In leasing law, however, the lessee, in contrast to a tenant, bears the price and material risk, i.e. he bears the risk of deterioration or loss of the leased item.