The reasons and the results of termination in financial leasing contract

The owners of a business enterprise apply to financial leasing transaction which is a method of financing provision used for enabling economic activities by covering medium and long-term needs and following new technologies and products easily. Financial leasing contract is established between two parties the lessor and the lessee although it is based on the three partied relation among the lessor, the lessee and the third person from which the asset is purchased. Financial leasing contract is a contract which is requested by the lessee and it foresees to leave the asset to the lessee by letting the lessor to purchase it and in an exchange of paying lease payments for tenancy acquiring the ownership. This agreement should not be cancelled within a fixed period of time.The aim of this study is to analyze the reasons, impacts and results of termination in financial leasing contract. In this study, dissolution in contract is discussed with the differentiation of automatic termination and cancellation. As part of this differentiation, the impacts and results of dissolution are analyzed. The legal character of the contract is underlined in order to have the contract?s features be understood and stated precisely. The features of the contract, its complex character and structure as `sui generis?, generating a permanent jural relation, fastening obligation mutually to each parties, are all emphasized during the study.The Code of Financial Leasing numbered 3226 is the basic text of law in discussing the impacts and results of the termination of the contract and determining the content of this study. Nonetheless, with the referral of the Code numbered 3226, Turkish Code of Obligations numbered 818 is considerable in the study. Besides, the Code of Capital Market numbered 2499 and the Code of Consumer Protection numbered 4077 as amended by the Code numbered 5582, housing has become the subject of financial leasing. Thus, the scope of the subject has been broadened and the reasons and results of the termination of the contract are evaluated within the framework prescribed by the effect of this Code.