Cancellation of lease before car delivery

terry (Querist) 13 April 2015 This query is : Resolved
I have opted for a car lease plan in the company that I am employed in. The company has an agreement with a leasing company for providing this option to employees.
I gave an order confirmation on a dummy agreement to my company.The road tax and registration for the car have been paid by the company however I have not taken the delivery of the vehicle since I have resigned from the company before the road tax was paid.
Can I cancel the order without any financial obligation ?

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Devajyoti Barman (Expert) 14 April 2015
Refer to the terms of the agreement. You are owner of this car and you have every right to get it back once the term of lease is expired or it is terminated early.

prabhakar singh (Expert) 14 April 2015
Much would depend on the language of agreement otherwise a lease without delivery of possession is an incomplete transaction.

Guest (Expert) 14 April 2015
Terms of agreement would prevail.

Rajendra K Goyal (Expert) 14 April 2015
Refer to the terms of the agreement.

M V Gupta (Expert) 14 April 2015
The company was merely a facilitator. The contract is between u and the supplier of the car on lease cum sale basis. You have signed the order form and the road tax and registration fee were duly paid. Hence legally the contract concluded except that delivery of the car remains. Ur resignation from the company may not confer right to u to retract from the contract. Check from the terms what penalties u will incur if u terminate the contract now and then take a decision.

terry (Querist) 14 April 2015
The car registration has been done in my company's name. The contract is between
Me and my company (terms of agreement)
My company and the leasing company (Master contract)
Penalty would be loss incurred on sale of vehicle to a third party.

M V Gupta (Expert) 15 April 2015
Ur present reply changes the presumptions on which the experts have responded earlier. Now u are stating that the car is registered in the name of the Company and the main contract is between the Company and the car supplier. As such I feel that on ur resignation from the Company, u have no obligation under the above arrangement. ur Company may take delivery of the car and allot it to another employee. Hence rest in peace.

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