Miles acquires a power generator under a two-year lease with the manufacturer.After four months,Miles realizes he no longer needs the generator.He delivers the generator back to the supplier,hoping that his lease payments will stop,but to his dismay,he is informed that he will be expected to pay the remaining twenty payments.Will Miles legally be required to finish all the lease payments?
A)Yes,he will,because this is an operations lease.
B)No,he won't,because the lessor has the chattel in his possession.
C)No,he won't,since he is no longer receiving benefits under the lease.
D)Yes,he will,since the contract made no provision for early termination.
E)No,he won't,since he no longer requires the use of the generator.

Question

Quizplus · Accepted Answer

Since the contract made no provision for early termination, Miles will be legally required to finish all the lease payments. This is because the terms of the lease agreement are binding and Miles agreed to them when he signed the lease. Therefore, he cannot simply return the generator and stop making payments without violating the terms of the lease.

Miles Acquires a Power Generator Under a Two-Year Lease with the Manufacturer.After