Can a lease on faulty equipment that never worked be noncancellable?

Answer 1

It possibly could at least theoretically, but only if it were specifically stated that way in the lease and the person accepting the faulty equipment knew that he was getting faulty equipment to begin with. In other words, he was satisfied that the money he is to pay on the lease is worth the risk that the equipment might never be fixed. He simply took a calculated risk and lost. A lease is a contract in which both sides make promises supported by consideration, i.e. the giving by each to each of something of value. One gives money in return for a piece of equipment. When one side does not live up to his bargain the other party may sue for damages, cancellation of the contract or specific performance of the contract. On the other hand, if there is no such specific clause and if it is contemplated that the equipment will work, then it should not be non-cancellable. This is because every contract has an implied promise that each side will complete his part of the bargain in good faith. This means that it is expected that the equipment will be in working order when first delivered. If the equipment never worked, my opinion is that the lessor breached his implied warranty and the lease should be cancelled. If the equipment breaks down the next day though, it might be non-cancellable with the lessee's responsibility to fix it. But note that in this situation the equipment did work at one time. In any event is sounds like there is some litigation in store for these two.