Best Answer

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.

User Avatar

Wiki User

โˆ™ 2008-09-02 14:07:37
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Can a lease on faulty equipment that never worked be noncancellable?
Write your answer...
Related questions

Where can I find commercial equipment to lease?

I want to open a barber shop. Where can I find commercial equipment to lease?I want to open a barber shop. Where can I find commercial equipment to lease?I want to open a barber shop. Where can I find commercial equipment to lease?

How can one lease business equipment?

There are many ways one can lease business equipment. One can lease business equipment by visiting popular on the web sources such as Small Business Administration.

Where can I find more information about equipment for lease?

If you are interested in obtaining more information about equipment for lease, I would highly sugguest Direct Capital. Please visit their website at:

Can I Cancel The Lease?

The commercial equipment lease is non-cancelable. However, you might request early repayment from the lease or upgrade to some more sophisticated equipment.

What are the Advantages of a lease to a lease agreement?

The lessee can return the equipment at the end of the lease period if it is no longer needed

Types of equipment to lease when starting business?

The equipment required to run a small business will depend on which type of business you are running. Here are some examples of where you can lease equipment: or

How do you write a letter of termination for lease equipment?

If you are leasing equipment and would like to turn it back into the lessee you can write them a letter requesting to terminate the lease. If this is a large piece of equipment the lessee will usually pick the equipment up. There may be a charge if you are terminating your lease before the end date of the contract.

Where can I lease commercial kitchen equipment?

If you go you can get kitchen equipment for lease. They ship the equipment free to anywhere in the United States so it's a pretty sweet website.

What is full service lease agreement?

A lease in which the lessor promises to maintain and insure the equipment leased. It is also known as a rental lease. It's commonly used in leases of equipment and commercial real estate.

If plant equipment is attached to leased property must the depreciable life of the equipment coincide with lease terms?

If the equipment was attached in such a manner that it could not be removed, you would depreciate it over the term of the lease or shorter.

Where can one get leasing on business equipment?

Many companies are currently leasing business equipment rather than purchasing. Some sites that offer the option to lease equipment are Lease Experts and Tiger Leasing.

What Is A Mid-Term Rewrite On A Lease?

This is unique technology upgrade option. Throughout the lease term if you want to move to new equipment we'll pre-pay that old commitment, sell that old equipment for any credit and write a brand new lease on the new equipment.

Am I Held Accountable For Maintenance And Repairs On My Leased Equipment?

Yes, as the Lessee, you're accountable. Who owns the leased equipment are the Lessor throughout the lease term, consider the Lessee (you) has having the equipment throughout the word from the lease the lease contract passes all obligations of apparatus repair and maintenance for you.

What is equipment lease What are its essential elements?

An equipment lease is an agreement that allows for a business or individual to rent equipment needed for a specific purpose. The lease usually has a start date, a payment date, the amount of the payment, and a description of what is being leased. There might also be a date to return an item and a clause pertaining to damages.

What Are The Options On My End Of Lease?

In the end of the lease, you can purchase end up possessing the lease or perform a fair market price lease when in the finish of the term, you buy the equipment for the need for in those days.

How do you cancel equipment lease?

The procedure should be listed in your contract.

Is it possible to rest or lease IT office equipment?

Yes it is indeed possible to rent out IT office equipment. For prices and supply lists, check out

Sometimes it is Better to Lease?

Business equipment is a depreciable asset and as such it loses value over time. Just like a brand new automobile loses value the moment you drive it off the lot, machinery and office equipment is worth less the minute it leaves the store or showroom. The lease of equipment solves two problems. Because you do not own the equipment and are essentially just borrowing it for a period of time, you do not have to concern yourself with its value shrinking over time. Once your lease is up, you simply return the equipment and do not have to concern yourself with its value. Second, when you lease equipment, you are never stuck with old, outdated technology. It is easy to upgradeto new equipment each time your lease expires.

Where can I rent equipment for an IT business?

There are many companies that offer equipment for lease for small businesses, including IT equipment. A couple of these companies are: and

Which American companies lease laptops?

Most computer outlets have a lease option for their products. There are also computer and office supply vendors that lease a variety of equipment to consumers and businesses.

For a high-technology item like computer equipment is the lease option preferable from the very outset Why or why not?

"For a high-technology item like computer equipment is the lease option preferable from the very outset Why or why not?"

What is The Effective Interest Rate On Lease Arrangement?

As the equipment lease arrangement is not a loan, there's no interest rate. You're paying rental for the use of the equipment over a pre-determined period. You aren't repaying a loan.

What is off-balance sheet financing?

The most common example would be a lease of equipment. Since the equipment is treated like a rental, the asset and the corresponding liability are not shown on the balance sheet. Lease payments are expensed as paid and the lease obligation would be disclosed in a note to the financial statement.

where can i find cheap lease equipment to start my business?

it all depends on what kind of equipment you are looking for..what kind of business do you have and type of equipment do you need? this is too broad of a question..

What is an operational lease?

An operational lease is a type of lease in which the contract period is less than the actual life span of the leased equipment, and the lessor pays all serving and maintenance cost. There is no transfer of ownership.