Finance Leasing Act 2000 · As enacted · Part II · Duties of Lessors, LessuEs AND SUPPLIERS
13. Non-delivery, late delivery and non-conformity of equipment
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Where an equipment specified in a finance lease has not been delivered to a lessee at or before the time fixed under such lease for its delivery, or has been delivered after such time, or where the equipment delivered does not conform lo the terms, conditions, warranties or specifications in the supply agreement relating to such equipment, the lessee may, subject to the provisions of subsection (2), reject the equipment and terminate such finance lease.
equipment
“equipment” means any tangible asset which has an economically useful life of more than one year and does not include land, any improvements made to land other than fixtures or immovable property attached to land which can be removed from the land without substantial destruction to such fixture or immovable property;
Where a lessee terminates a finance lease under subsection (1), the lessee may withhold the payment under such finance Icase and further shall be entitled to recover from the lessor any money paid under the finance lease, less any reasonable sum withheld by the lessor in respect of—
lessee
“lessee”, in relation to a fiance lease, means a person who acquires a right to possession and use of an equipment under the lease;
any benefits derived by the Icssee prior to the termination ;
any expenses incurred by the lessor in connection with the lease ; and
‘any loss tn value of the equipment arising from a default or negligence of the lessee.
Where an cquipment specified in a finance lease delivered to a lessee within the time fixed for its delivery, docs not conform to the terms, conditions, warranties or specifications in the supply agreement relating to such equipment, or where the lessor has reason to believe that the equipment may not be supplied within the time fixed for its delivery, the lessor may supply to the lessee another equipment in conformity with the terms, conditions, warranties or specifications in the supply agreement, and the lessee shall unless the finance lease provides otherwise, accept the equipment as if the lessee had agrced to accept delivery of the equipment from the lessor.
Where a lessce has accepted an equipment specified ina finance lease notwithstanding that it has not been delivered within the time specificd for its delivery, or it had been delivered after such time, or does nol conform to the terms.
conditions, warranties or specifications in the supply agreement relating to such cquipment, the lessee shall not thereafter have the right under subsection (1) to cither reject the equipment or terminate the lease, as the case may be.
The lessor shall not except as provided for t this section, incur any liability to the lessee by reason of the non-delivery or late delivery of an equipment by a supplicr or of the non-conformity of such equipment with the terms, conditions, warranties or specifications in the supply agreement, unless such non-delivery, late delivery or non-conformity was duc to an act or omission on the part of the lessor.
Lessee’s acceptance of equipment.