[Direct answer]Yes, but it must follow the notice procedure. According to Article 752 of the Civil Code of the People's Republic of China, the lessee shall pay the rent in accordance with the contract; if the lessee still fails to pay the rent within a reasonable period after being notified, the lessor may request the payment of the full rent or rescind the contract and recover the leased item. In other words, the lessor has two options: one is to claim that the full rent is due in advance and require the lessee to pay it in one go; the other is to rescind the contract and recover the equipment. It should be noted that the lessor should usually give a notice and set a reasonable period first. Otherwise, the direct recovery of the equipment may lead to disputes due to improper procedures; after the rescission of the contract and the recovery of the equipment, the settlement of the paid rent, the depreciation and residual value of the equipment, and the compensation for losses shall be handled in accordance with the contract and the principle of fairness.

1. Problem background and typical scenarios

When a company obtains equipment through financial leasing and suspends payment of the lease fee due to operational difficulties, the lessor is eager to "repossess the equipment", while the lessee claims that "it's too unreasonable to repossess the equipment just one or two installments behind". In financial leasing disputes in Beijing, the conditions for repossession after suspension of payment, the notice procedures, and the settlement methods are the focus of disputes between the two parties. If not handled properly, it is easy to turn into a series of lawsuits over the ownership of the equipment and compensation for losses.

II. Key points of contention

First, whether the termination of supply meets the conditions for termination. Second, whether the notice procedure is necessary. Third, whether the recovery of equipment and the claim for all rent can be used concurrently. Fourth, the settlement and losses after the recovery.

III. Professional analysis by Henglue Lawyers

The first layer, termination and notice: If the lessee fails to pay the rent as agreed and still fails to pay within a reasonable period after being reminded, the lessor may terminate the contract and recover the leased item. Notice is an important procedural step. The contract usually stipulates the notice period and termination conditions. In practice, the notice of reminder and the evidence of delivery should be preserved. The second layer, choice of rights: The lessor may choose to request full payment of the rent or to terminate the contract and recover the equipment. Generally, the two options should not coexist simultaneously to avoid double compensation. When choosing a path, the lessor needs to consider the residual value of the equipment, the lessee's repayment ability, and the recovery costs comprehensively. The third layer, other termination circumstances: If the lessee transfers, mortgages, pledges, invests in stocks, or disposes of the leased item in other ways without the lessor's consent, the lessor may also terminate the contract. The fourth layer, settlement and compensation: After termination and recovery, the paid rent, depreciation of the equipment, and residual value should be settled. The lessor may claim compensation for losses. If most of the rent paid by the lessee has already covered the costs, the recovery of the equipment and claims should follow the principles of fairness and offsetting profits and losses to avoid double profit. Related disputes can be resolved through legal channels.\nFinancial capital and cross-border transactions involving foreign entitiesOverall service handling.

IV. Practical suggestions and legal basis

First, verify the provisions of the contract regarding rent payment, the notice period for default, and the conditions for termination. Second, the lessor shall give written notice and retain the evidence of delivery before asserting their rights. Third, choose between claiming all the rent and exercising the right of recovery, and evaluate the residual value of the equipment and the costs of recovery. Fourth, after exercising the right of recovery, promptly settle the paid rent, depreciation, and residual value, and claim compensation for losses. Fifth, if the lessee believes the recovery is improper, they may claim procedural defects and compensation for losses, and if necessary, resolve the dispute through litigation or arbitration. Main legal basis: Articles 752, 753, and 754 of the Civil Code of the People's Republic of China; Article 563 of the Civil Code; the Interpretation of the Supreme People's Court on Legal Issues Concerning the Trials of Disputes over Financial Leasing Contracts (amended in 2020) regarding the provisions on termination and recovery; the specific application shall be subject to the currently effective provisions.

5. Henglue Law Firm's Reminder

There are three key points to terminate the supply and reclaim the equipment: if the lessee still fails to pay within a reasonable period after being reminded, the lessor may claim all the rent or terminate the lease and reclaim the equipment; the reminder procedure should be documented, and directly towing the equipment away may easily lead to disputes; after reclaiming the equipment, the lessor should settle the paid rent, depreciation, and residual value, and the compensation for losses should follow the principle of fairness and offsetting profits and losses. For cases involving financial capital and cross-border transactions, the parties concerned may seek legal assistance through relevant channels.\nFinancial capital and cross-border transactions involving foreign entities.The service obtains an overall solution, which involves the integration of corporate contracts and operationsBusiness and contract disputes in enterprisesThe sections related to enforcement and creditor recovery can be referred to for reference.Creditor's rights and debts, and enforcementFor any inquiries regarding intellectual property and general legal services, please feel free to contact us.Intellectual property and corporate lawTeam.

VI. Frequently Asked Questions

Q1: If the rent is not paid, will the equipment be directly repossessed?

Generally, the lessor does not directly reclaim the leased object. Only when the lessee still fails to make the payment within a reasonable period after being reminded, can the lessor terminate the contract and reclaim the leased object. If there are any other provisions in the contract, the lessor shall follow the provisions of the contract.

Q2: Can I ask for the full rent and collect the equipment at the same time?

It's generally not advisable. Requesting payment of the full rent and terminating the contract to recover the equipment are two different approaches. At the same time, making both claims may result in duplicate compensation, so you need to choose one of them.

Q3: How should the paid rent be calculated after the tenant moves out?

The lessee and the lessor shall settle the paid rent, the depreciation of the equipment, and the residual value. The lessor may claim compensation for the losses and follow the principle of fairness and offsetting profits and losses.

Q4: What if the lessee disposes of the equipment without authorization?

If the lessee transfers, mortgages, pledges, invests in shares, or disposes of the leased asset in any other way without the lessor's consent, the lessor may terminate the finance lease contract.

Q5: What should I do if I can't get my money back after a transaction gone wrong?

You can claim that there are flaws in the notice and termination procedures and demand compensation for losses. If no agreement can be reached through negotiation, the matter should be resolved through litigation or arbitration. It is important to fix the evidence in a timely manner.

The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the adjudication standards in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with evidence materials, to avoid missing the statutory time limit. →Financial capital legal services·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In case of disputes, please consult a practicing lawyer in time.