6. Dylan leases a car from Toyota for 3 years for a down payment of $2,000 and 3

Question

6. Dylan leases a car from Toyota for 3 years for a down payment of $2,000 and 36 monthly payments of $250. After two years, Dylan assigns the lease to Skylar for the remaining year. Dylan informs Toyota that Skylar will be taking over the lease and to expect payments from Skylar. After 6 months Skylar stops making payments and Toyota sues Dylan. You are the judge, who wins?

7. If you were advising Dylan with respect to the assignment in question 6, what advice would you give Dylan in order to insure that Dylan would not be liable if Skylar failed to make the payments.

Explanation / Answer

Leases -Its mutual agreement for particular tenure. Where both party predefine terms and condition. This lease also include what if clause & due process for amendment of lease business. If its clearly mention in lease document responsibility of payment shifts to new lessee. OR If terms clearly mention responsibility for payment remain to its first lessee till completion of tenure and term is accepted by first lessee in that case it become liability to repay payment. But if such terms is not previously included in terms in that case liability of repayment shift from first lessee to second as information given to Toyota by first lessee.

Summery - In given case When first lessee Inform to Toyota lease getting take over by Skylar then Toyota didn't object within stipulate period of time it means Toyota consented and agreed by accepting first installment from Skylar. If Toyota reject acceptance of first installment from Skylar with objection and puts warning to its first lessee that its violation of lases did. In that case It was possible to recover remaining installment from Dylan.

- After examining terms and condition mutually agreed by both party in did document, in case who ever violet terms is responsible. If no clear terms and condition mansion then person who neglect communication is responsible. In given case Its was Toyotas responsibility to respond communication made by Dylan, that not to neglect communication.

-Dylan should collect evidence which clearly travails communication happen before takeover lease by Sklar. And supportings Toyota accept installment from Skylar   

Related Questions

Navigate

• Browse (All)
• Browse 6
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.