Whistle Cabs, a taxi service company, has been ordered by the traffic department to upgrade its taxi meters to digital ones. Whistle Cabs contemplates a sales contract with Running Electricals, a company that manufactures digital taxi meters. Due to short notice from the city and a lack of funding, however, Whistle Cabs instead approaches Goldmint Bank, which purchases the digital taxi meters from Running Electricals and delivers them to Whistle Cabs. The contract between Whistle Cabs and Goldmint Bank allows the taxi service company to use the taxi meters for a set period of time by providing monthly rentals. What is the nature of the contract made between Whistle Cabs and Goldmint Bank?

Question

Quizplus · Accepted Answer

The contract between Whistle Cabs and Goldmint Bank is a lease, as it involves Whistle Cabs paying monthly rentals to use the digital taxi meters owned by Goldmint Bank for a set period of time.

Whistle Cabs, a Taxi Service Company, Has Been Ordered by the Traffic