Legal analysis: A financial lease contract consists of a sales contract and a lease contract, with three parties: the seller, the lessor (the buyer) and the lessee. In practice, the financial leasing transaction is a complicated process: (1) the user and the supplier (seller) reach an agreement on the terms of the equipment sales contract; (2) The user proposes to enter into a lease with the leasing company; (3) The user signs a lease contract with the leasing company; (4) The leasing company signs a sales contract with the supplier; (5) The supplier delivers the goods to the user, and the user accepts the goods; (6) The user delivers the acceptance certificate of the subject matter to the leasing company and pays the down payment; (7) The leasing company pays the payment to the supplier.
Legal Basis: Interpretation of Applicable Legal Issues in the Trial of Financial Leasing Contract Disputes Article 1 The people's court shall, in accordance with the provisions of Article 237 of the Contract Law, determine whether it constitutes a legal relationship of financial leasing in combination with the nature, value, composition and contractual rights and obligations of the parties. The people's court should deal with the contract named financial lease, but the contract does not actually constitute a legal relationship of financial lease.