Aircraft Lease To Purchase Agreement

The growing concerns faced by airlines and leasing companies about this pandemic have raised interesting questions about whether existing legislation and „standard“ conditions in a typical aircraft leasing contract better protect the rights of parties in unexpected situations, and in particular the party. In this article, we will examine the general legal situation and the relevant clauses of a market-compliant aircraft lease to ascertain whether leasing companies have the full right to demand leases payable or to terminate their leases due to a late payment by the taker, or whether a taker can claim donations under the lease for circumstances beyond their control. In Malaysia, an agreement to do an act that subsequently becomes impossible or illegal, according to Section 57 (2) of the Contracts Act 1950 („Contracts Act“), could be considered frustrating and non-acute: first, as with all financing, there is an integrated premium which, in return for the privilege, should not be paid by the customer at the time of purchase. must be willing to pay. Lenders clearly have the advantage of having years of research to predict the value of an aircraft at the end of the leasing period. Given that many lenders have been in an unfavourable position during the economic recession of recent years, rental conditions are more conservative and favour the lender more than in previous years. The „infernal or flood“ clause is extremely important to landlords because it ensures that the rent that the tenant must pay under the tenancy agreement generates a constant cash flow. This ensures that the renter has the ability to repay debts for the aircraft when it is financed. It is unlikely that this basic clause will be abandoned by an owner. As a buyer, your goal is simple: make sure you get what you think you are paying for.

The only way to know safely is to have a proper pre-emption inspection. Does your sales contract really give you the critical inspection rights you need? Our people do it. Their sales contract should be considered an absolute minimum: it is very likely that leasing companies will first see the „hell or flood“ clause, which is a standard clause in aircraft leases. The „infernal or flood clause,“ also known as the „net tenancy“ clause, provides for the obligation for the holiday of the taker to pay the rent unconditionally for the duration of the lease, regardless of the circumstances. Most aircraft leases are governed by English or New York law, and the question of whether the frustration is accurate or not depends on the legislation in place in the lease.