With a Fair Market Value equipment lease, is there any obligation on
the part of the lessor to inform the lessee when the lease contract
period has expired?
We leased a PC back in 2001 as a Fair Market Value lease. The terms
were for 48 payments. We made the 48th payment in Jan. 2005. After
that we continued to receive invoices from the leasing company, with
no notification or indication that the lease period was actually over.
We overpaid by nine payments.
Is it standard practice not to notify the lessee? Would we have any
recourse in filing a complaint, or asking for a refund?
I am afraid that you qouted the conditon:
"it seems to say that within 5 days of the expiration of the lease
term, the lesee should return the equipment, or continue paying rent,
or pay the then fair market value."
"... or continue paying rent, ..."
I expect that your only choice is to return the equipment with
receipted cancellation of the contract.
But if you still need the equipment, the fair market value of a PC
after almost five years could be a better choice than leasing or
buying new equipment. Old PCs aren't worth much.
I have a friend who built his leasing company on the basis of short
term leases with similar termination clauses on the well-founded
speculation that the leases would be allowed to continue (well-founded
because he had previously worked for the supplier of the equipment
that leased on that basis).
The contract conditions made the lessee responsible for cancelling, as
in your case.
Sorry to confirm Premaker's comment, Myoarin
PS: Of course, this is no legal advice, as you should read in the Disclaimer below.
Yes, I have a grainy copy...it seems to say that within 5 days of the
expiration of the lease term, the lesee should return the equipment,
or continue paying rent, or pay the then fair market value. But I
guess I was still expecting to receive some notification beforehand.
It depends on the terms of the lease. Some leases will automatically
extend unless the lessee explicitly requests otherwise. Do you have a
copy of the lease agreement that you signed?
 Allergies.. no relief?!?
 Religion in the workplace? |