Can a finance lessor compel the original supplier to buy back equipment at lease end without an express clause?

Published by a LexisNexis Commercial expert

Q&As

We assumed for the purposes of this Q&A there exists in place an arrangement creating a contractual link between the initial equipment supplier and the finance company as lessor; for example, a tripartite agreement among the supplier, lessor and lessee, or a contract between the finance company lessor and the original supplier for the purchase of the equipment before the lessor leases it on to the lessee. We also proceed currently on the basis that no particular industry or sector rules apply to any such arrangement between lessor and original supplier, or between the original supplier and the lessee, that would affect the analysis. This Q&A centres on the principles of construing contracts and the general position for equipment lease and hire agreements.

Contract interpretation

If a contract does not explicitly provide for an action from which one party seeks to benefit, it must be assessed whether an appropriate term should be implied...

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Web page updated on 27/05/2026

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