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L & L Lawrence Footwear, et al. vs. PCI Leasing and Finance Corporation.

L & L LAWRENCE FOOTWEAR, INC., SAE CHAE LEE and JOHN DOE, Petitioners, versus PCI LEASING AND FINANCE CORPORATION, Respondent.

G.R. No. 160531 | 2005-08-30

THIRD DIVISION

D E C I S I O N 

PANGANIBAN, J.: 

Under a financial leasing agreement, a finance company purchases, on behalf of or at the instance of the lessee, the equipment that the latter is interested to buy but has insufficient funds for. Simultaneous with the purchase, the finance company then leases the equipment to the lessee in consideration of the periodic payment of a fixed amount of rental. Recognized by this Court as fairly common transactions in the commercial world, such agreements have been accepted as genuine and legitimate. 

The Case 

Before us is a Petition for Review[1] under Rule 45 of the Rules of...