PROTECTIVE MECHANISM UNDER EQUIPMENT LEASING ACT

 

The Equipment Leasing Act 2015 provides that:

i. The lessee shall not remove the leased asset from Nigeria without the written consent of the lessor

ii. The lessee shall be liable for repairs to damage caused by his act, agent or servant or any third party to a leased equipment (s, 24)

iii. Lessor is generally not liable for any defect in fitness for purpose of leased asset, except the lessee suffers loss as a result of reliance on the lessor (S 31, 32, 33)

iv. Right of inspection of the leased asset and obligation to provide information on the leased asset (s, 26 & 27)

v. Ownership is not impaired by mere fixation of leased asset to land or building (s 19)

vi. The implied legal ownership of lessor shall prevail at all times, except against a person in a non-registered lease (s 19 & 21)

vii. Prohibition against sale and transfer of the leased asset or any act inconsistent with ownership right of the lessor

viii. Registration of lease constitute constructive notice (s 16)

ix. Fixation of lessors name to the leased asset (s 18)