The Importance of Distinguishing Between the Pure and Simple Lease Contract and Renting. Better Safe than Sorry.

3 January 2008

In the past few years pure and simple leasing contracts have proliferated- although with numerous detailed clauses- for basic assets, objects and equipment for companies and professionals including computers, GPSs to manage transport fleets, plotters, photocopiers, etc.

With these contracts, which are entirely legitimate and neither abusive nor annullable, it is of the utmost importance that, prior to signing, the leasing party who receives and uses the leased assets is aware of and fully understands that this is neither an offer nor a contract for services, but merely the cession of use of an asset.

The Courts have already ruled, decisively, that as regards “renting”, it should clearly state that the lesser assumes the obligation to provide other services in addition to the cession of the leased object (assets or devices), such as installation and maintenance.

And, in any case, aside from auto and vehicle rentals in general (since in those contracts it usually always states the word “renting”) we must advise that if you wish to contract maintenance, technical assistance, repairs and/or any other service following the actual handover or cession of the asset, the contract should always include the word “renting”.

Otherwise, if there are any doubts over the interpretation, effects and/or fulfilment of the contract, a judge could, in the end, legitimately identify and rule on the absence of any obligation for rendering of services.

For further information, please contact Alex Ensesa Casulleras : aensesa@mmmm.es