ALRAQABA . ISSUE 18 55 The Finance Lease is a contract that is concluded similarly to any other contract. Any contract is established upon certain objective elements, and without them, the contract would render null and void. In accordance with the general code, when a contract is concluded, it must include the element of acceptance that is expressed by both contracting parties. Acceptance is established by the meeting of the wills of the two parties of the contract by expressing their offer and consent with the intention to produce a legal effect. Nevertheless, the element of acceptance is effective only if it was expressed by an individual with legal capacity, in addition to the involved legal wills being devoid of contract-vitiating flaws. By opting for Financial Leasing, the project owner (the lessee) would be choosing from the various methods of funding to fund their project. The owner would then present to the funding institution (the lessor) a proposal that gives an account of their personal and financial information, as well as information relevant to the project activities. The proposal would recount, for instance, the project’s capital, current and future profits, and its requirements of movable and immovable assets, along with a description of the asset that is requested to be funded and its purpose. This proposal would then be considered as an offer that is submitted by the lessee to the funding institution as a preliminary step to signing the finance lease. The institution would study the proposal and may afterward accept the offer, thus establishing the element of acceptance for both parties, or may decline it, hence not fulfilling the element from the lessor side and so nullifying the contract for the absence of one of its elements. The second element of the contract is the underlying asset, which has to be present, presentable, or possibly to be presented. In addition, the asset has to be defined or definable, as well as legitimate and not in violation of the laws and the general code. Moreover, in a lease of a movable or immovable asset, the funds have to be utilized in a direct productive activity, either of goods or of services. The third element of the contract is purpose, and it refers to “the objective targeted by the committed, in return for accepting the commitment”. As for the lessee, the purpose of the contract and the commitment to pay the lease is their need to use the movable or immovable asset, which they could not afford, for the benefit of their project. Whereas for the lessor, their commitment to fulfill the purchase contract with the supplier and hand over the leased asset to the lessee is founded upon their need for investment and the profit earned from the agreed periodic rent. However, regardless of its purpose or incentive, the contract should not violate the law or else it would render null. Only when the aforementioned elements meet would the Finance Lease be valid and effective for its parties. Furthermore, it is worth mentioning that the mentioned elements are part of the general code, and there are no specific law provisions for Financial Leasing. References: ). عقد التأجير التمويلي. (رسالة ماجستير). جامعة الكويت، كلية 2018 الفيلكاوي، جنان أحمد. ( ● الحقوق. ● FINANCE LEASE, MASTER’S THESIS – AVAILABLE ONLY IN ARABIC ). عقد الإيجار التمويلي. الإسكندرية: دار الجامعة الجديدة للنشر. 2005 البدالي، نجوى إبراهيم. ( ● .53 ص ). العقود الدولية عقد الليزنع أو عقد الإيجار التمويلي. (الطبعة الأولى). 2008 ناصيف، إلياس. ( ● .54 ، ص 16 بيروت: منشورات الحلبي الحقوقية. ص ● INTERNATIONAL CONTRACTS, LEASING, OR FINANCE LEASING -AVAILABLE ONLY IN ARABIC .67/1980 القانون المدني الكويتي ● ● KUWAIT CIVIL LAW (AVAILABLE IN ARABIC) ). عقد التأجير التمويلي دراسة مقارنة في القانون الأردني مع 2005 الخصاونة، صخر أحمد. ( ● .114 الإشارة إلى أحكام الفقه الإسلامي. (الطبعة الأولى). دار وائل للنشر. ص ● FINANCE LEASE, A COMPARATIVE STUDY IN THE JORDANIAN LAW WITH REFERENCE TO THE PROVISION OF ISLAMIC JURISPRUDENCE ). عقد الإجارة فقهاً وتطبيقاً في عشرين سؤالاً وجواباً. دراسة 2009 نصار، أحمد محمد محمود. ( ● http://iefpedia. .5 مقدمة لموسوعة الاقتصاد والتمويل الإسلامي منشورة بالإنترنت. ص com/arab/wp-content/uploads/2009/11/vb.pdf ● 20 Q & A ABOUT LEASE CONTRACTS IN JURISPRUDENCE AND PRACTICE – AVAILABLE ONLY IN ARABIC. ). الكويت: دار الضياء للنشر والتوزيع. 1987 أعمال الندوة الفقهية الأولى لبيت التمويل الكويتي، ( ● .583 ص Thesis
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