Leasing contract (Arabic Language – AED 400)
Leasing of assets is an important mode of finance for small and medium enterprises as it allows them to benefit and use assets without the need to incur significant upfront capital expenditure.
In the UAE, a federal law (no. 8 of 2018) has been issued (which came into effect on the 1st of January 2019) providing a defined regulated framework to the leasing contract or “finance lease”.
According to this law, a finance lease is “a relationship between the lessor and the lessee whereby the lessor shall own the leased asset for the purpose of leasing it. The lessor shall lease the asset to the lessee for a limited period and through an independent contract with an option to the lessee to own the leased asset according to the provisions of this law”.
In this course, we will tackle the following topics:
1. What is finance lease? What is its legal nature and what are its characteristics;
2. The difference between the leasing contract and other contracts;
3. The conditions of formation of the leasing contract;
4. The effects of the finance lease (parties’ rights and obligations);
5. The end of the leasing contract.