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Judgment of the Presidium of the Supreme Commercial Court of 7 February 2012 № 13135/11 in the case The company “Atlant-M Leasing” vs Irina Kolontaenko, an entrepreneur

Point of law: which circumstances enable the court to determine by whom the seller of the asset being leased under financial leasing transaction has been chosen - by the lessor or lessee?

Ratio decidendi: Presidium held that the presence in the financial leasing contracts of standard clauses which provide for the choice of the seller by the lessee does not per se constitute a conclusive proof of the choice having been made by the lessee, that is, by a weaker party to the transaction. The party that has actually chosen the seller should be determined based on the concrete circumstances of the case and not from the standard provisions of the contract. The real proof of the choice having been made by the lessee is the entirety of real actions of the latter, in particular the fact that he had signed without any disagreement the sales-purchase contract under which the asset was acquired by the lessor from the seller in the favour of the lessee.

Practical consequences: the Judgment says that prior court decisions in analogous cases if inconsistent with this interpretation may be reversed in the procedure and within the limits envisaged by Art 311 of the Commercial Procedure Code.

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