Financing Leasing vs Operating Leasing
Zhu and Company Y signed a financing leasing contract, in which both parties agreed that Zhu would purchase a set of equipment and lease to Company Y, after the lease expired, if Company Y could pay off the financing principal and the lease fee, then the set of equipment should belong to Company Y, otherwise, the lease period shall be extended. Later then, Company Y defaulted on the lease, Zhu brought a lawsuit against Company Y. Company Y defended with the excuse that Zhu had not obtained the financial business license, so the contract should be deemed as invalid. The…