In our present commercial life, by means of financial lease agreement, in other words leasing while investment costs of businessmen are lessened leasing has been practiced in a large scale. In such agreements the lessee chooses the fixed equipments and demand credit from a leasing company for this transaction. The leasing company uses) the credit to buy the equipment chosen by the lessee, appropriate for the usus of him pays the rent by a contract acted with the company, for the fixed equipment.
            Leasing has been defined in Financial Lease Code no: 3326 as “It is a contract whereby the lessor releases the possession of a fixed equipment bought from a third party or acquired in another way, based on the demand and preference of the lessee, on condition that to be benefited in anyway from it and a certain amount of lease to be paid and the contract not to be terminated for a certain period of time.”
            In leasing the party that leases should absolutely be a joint-stock company. In case the company is situated abroad and hasn’t got any branch in Turkey, then the contract has got to be confirmed by the Ministry that the Undersecretariat of Treasury and Foreign Trade is bound. Leasing can only be acted for four years. That the leasing to be under for years, is subject to the permission of above mentioned official organizations only for certain fixed equipments whose values are to be determined by Undersecretariat  of Treasury and Foreign Trade.
            When a leasing terminates the equipment whose propriety belongs to the lessor company has to be given back. However, in many cases at the end of the period, a right of purchasing is given to the lessee for a small price. Besides even the contract may contain a close that the equipment will directly belong to the lessee at the end of four years.
            Leasings are bound to very strict formalities. They’re absolutely got to be confirmed by a Notary Public situated in the lessee’s abode. As for the leasing concerning real estates, it is obligatory for them to be registered to Land registry where the real states are situated. Unless this prerequisite that the registration is carried out the leasing will be valid. By means of this formality even if the owners of the real estate changes the lessee can bring forward the leasing against the new owners. Besides, on account of the bankruptcy of the leasing company the equipments that are the subject matters of the leasing cannot be legally converted into cash.
            A leasing company has got to insure the equipment that is the subject matters of the leasing before delivering it to the lessee but premiums are to be paid by the lessee. The lessee is under the obligation of using the equipments with duly caring appropriate to the leasing. Otherwise he will have acted against the leasing. In such a case the lessor will have the right terminating the leasing. However before the termination due to the unproper behavior of the lessee, the lessor has to acknowledge a certain dead-line to the lessor and notify him that way. In case the unproper behavior of the lessee is kept on, then the leasing can be terminated. Can a lessee hire the equipment that is a subject matter of the leasing to a third person? There isn’t such a possibility. But such a close can be annexed to the leasing that the lessee himself can hire the equipment to somebody else.
            If one of the parties behaves unduly that will cause the dissolution of the leasing then the leasing will have ended effecting the future. In this case the right of claiming compensation according to the Article 96 of Turkish Code of Obligations will rise.
            As an example, if the lessee who acts against the conditions of the leasing, the lessor not only can claim a certain amount of compensation but the unpaid rents for the rest of the agreement.

            Financial Lease Agreement that has been regulated in accordance with the international practice provides important facilities to our businessmen who would like to invest, benefiting from the above mentioned Law-no 3326.