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Difference between revisions of "Leases"
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The [http://canlii.ca/t/8495 ''Personal Property Security Act''] (see the section on [[Security Agreements]]) applies to most consumer leases. It clearly applies to all leases in which the consumer has the option of buying the property. The ''Personal Property Security Act'' also applies to most leases that do not have such a purchase option if the lease fits within the extended definition of “lease for a term of more than one year” (see the definitions in section 1 of the Act). A lease for a term of more than one year includes renewable shorter-term leases as well as leases with an indefinite term. | The [http://canlii.ca/t/8495 ''Personal Property Security Act''] (see the section on [[Security Agreements]]) applies to most consumer leases. It clearly applies to all leases in which the consumer has the option of buying the property. The ''Personal Property Security Act'' also applies to most leases that do not have such a purchase option if the lease fits within the extended definition of “lease for a term of more than one year” (see the definitions in section 1 of the Act). A lease for a term of more than one year includes renewable shorter-term leases as well as leases with an indefinite term. | ||
Of significance are the consumer goods remedies in Part 5 of the ''Personal Property Security Act'', such as “seize or sue” and the “two-thirds rule”. These provisions apply to leases of consumer goods with a term of more than one year if the lease secures payment or performance of an obligation. Such leases are commonly called “'''security leases'''”. Note that Part 5 does not apply to what are commonly termed “'''true leases'''”, which are strictly rental agreements and do not secure payment or performance of an obligation, even when they have a term of more than a year. | Of significance are the consumer goods remedies in Part 5 of the ''Personal Property Security Act'', such as “seize or sue” and the “two-thirds rule”. These provisions apply to leases of consumer goods with a term of more than one year if the lease secures payment or performance of an obligation. Such leases are commonly called “'''security leases'''”. | ||
=== True leases=== | |||
Note that Part 5 of the ''Personal Property Security Act'' does not apply to what are commonly termed “'''true leases'''”, which are strictly rental agreements and do not secure payment or performance of an obligation, even when they have a term of more than a year. | |||
It is not always easy to determine whether a client has a security lease or a true lease. Some of the indications of “security leases” were noted in the leading case of [http://canlii.ca/t/1t3s2 ''Accent Leasing & Sales Ltd. v. Babic and Bryant'']: | It is not always easy to determine whether a client has a security lease or a true lease. Some of the indications of “security leases” were noted in the leading case of [http://canlii.ca/t/1t3s2 ''Accent Leasing & Sales Ltd. v. Babic and Bryant'']: | ||
