Sri Lanka Consolidated Acts Sri Lanka Consolidated ActsNon-delivery, late delivery and non-conformity of equipment
| 13. (I) Where an equipment specified in a finance lease has not been delivered to a lessee at or before the time fixed under such lease for its delivery, or has been delivered after such time, or where the equipment delivered does not conform to the terms, conditions, warranties or specifications in the supply agreement relating to such equipment, the lessee may, subject to the provisions of subsection (2), reject the equipment and terminate such finance lease. (2) Where a lessee terminates a finance lease under subsection (1), the lessee may withhold the payment under such finance lease and further shall be entitled to recover from the lessor any money paid under the finance lease, less any reasonable sum withheld by the lessor in respect of- (a) any benefits derived by the lessee prior to the termination ; (b) any expenses incurred by the lessor in connection with the lease ; and (c) any loss in value of the equipment arising from a default or negligence of the lessee. (3) Where an equipment specified in a finance lease delivered to a lessee within the time fixed for its delivery, does not conform to the terms, conditions, warranties or specifications in the supply agreement relating to such equipment, or where the lessor has reason to believe that the equipment may not be supplied within the time fixed for its us delivery, the lessor may supply to the lessee another equipment in conformity with the terms, conditions, warranties or specifications in the supply agreement, and [he lessee shall unless the finance lease provides otherwise, accept the equipment as if the lessee had agreed to accept delivery of the equipment from the lessor. (4) Where a lessee has accepted an equipment specified in a finance lease notwithstanding that it has not been delivered within the time specified for its delivery, or it had been delivered after such lime, or does not conform to the terms. conditions, warranties or specifications in the supply agreement relating to such equipment, the lessee shall not thereafter have the right under subsection (1) to either reject the equipment or terminate the lease, as the case may be. (5) The lessor shall not except as provided for in this section, incur any liability to the lessee by reason of the non delivery or late delivery of an equipment by a supplier or of the non-conformity of such equipment with the terms, conditions, warranties or specifications in the supply agreement unless such non-delivery, late delivery or non-conformity was due to an act or omission on the part of the lessor. |