12. The tenant keeps the aforementioned machinery and equipment, insured on behalf of the company, with a recognized insurance company and pays the premium as soon as it is due and regularly due. The insurance policy will be given to the company and the tenant will provide the company with the premium certificate or Xerox copy of the company from time to time. If the tenant does not insure these machines and facilities or pays the premium at any time, the company has the right to insure the same insurance or pay the premium (without prejudice to its other rights under this agreement), as the case may be, and the costs incurred by the business are paid by the tenant upon request to the company. 25. The tenant has the opportunity to acquire these machines and equipment, and the option is exercised by notifying the company one month in advance. The option to purchase may be exercised from the expiry date of the agreed deadline for this contract or from an earlier date. In the first case, the tenant is required to pay the company an amount equal to the rental price of the machines and equipment referred to in the point (3), reduced by the total amount of payments up to that date or the higher rupee. In the latter case, that is, if the option to purchase is exercised before the term of the contract expires, the tenant is required to pay an amount equal to the purchase price of the rent or the balance of the rent, payable in monthly increments of the rental costs up to the date of the agreed term of the contract, since it is reduced by a discount corresponding to two thirds of an amount corresponding to the rental costs. the same share as the balance of the rental sale price that has not been due until now applies to the purchase price of the lease. 15. The ownership or ownership of the company on these machines and equipment remains unsleful for the duration of the contract and the tenant is considered to be bailee with all the obligations and obligations of a bailee in the law until the tenant exercises his option to purchase thereafter. If the buyer is late in paying the payments, the owner can recover the merchandise, a seller`s protection that is not available with unsecured credit systems for consumers.
HP is often beneficial to consumers because it distributes the cost of expensive items over a longer period of time. Business owners may find differences in balance sheet processing and tax treatment of leased property advantageous to their taxable income. HP requirements will be reduced when guarantees or other forms of credit are available to consumers. The use of leases as a type of off-balance sheet financing is strongly discouraged and does not conform to general accounting principles (GAAP). But if you paid less than a third of the total amount, you don`t need a court order. The agreement should tell you which third party is. Leases are similar to leases that give the lessor the ability to buy at any time during the agreement, such as . B car rental. Like rent, rental purchases can benefit consumers with bad credit by spreading the cost of expensive items that they could not afford over a long period of time. However, this is not the same as a credit extension, since the buyer technically only owns the item once all payments have been made. The cost of a lease is the difference between the cash price of the leased goods and the full rental price.