By: Tamara M. Buckwold, College of Law, University of Saskatchewan 1.1 The Commercial Leasing Market

Since the lease invariably excludes any and all obligations relating to the quality and performance of the goods,34 the lessee enjoys the benefit of any legally implied terms only to the extent that the contract of sale provides for assignment of the lessor's warranty rights as against the supplier to the lessee. [...] [38] Similar issues arise where the lessor supplies goods to the lessee, but assigns the lease to a third party financer.40In the absence of contrary contractual provision, the assignee assumes the contractual rights of the lessor, subject to any claims or defences of the lessee in existence at the time that the lessee acquires knowledge of the assignment. [...] The lessor is exempted from the statutory warranties of merchantability and fitness,55 and is subject only to a limited warranty against interference with possession.56 However, the lessee is given the benefit of the express and implied warranties given by the supplier to the lessor in the supply contract, to the extent of the lessee's leasehold interest.57 A supplier may effectively exclude or mo. [...] [76] Besides observing the procedural provisions of the PPSA, the lessor must act throughout in good faith and in a commercially reasonable manner.91 The statutory remedial regime thus enables the lessor to recover the debt due under the terms of the contract of lease, while protecting the lessee by ensuring that the best possible value is obtained from disposition of the leased goods. [...] In the context of consumer security leases, some of the PPSAs provide that failure by the lessor to observe the statutory realization provisions raises a defence to any deficiency claim "to the extent that the non-compliance affects the ability of the debtor [lessee] to protect the debtor's interest in the collateral or makes the accurate determination of the deficiency impracticable."195 This see.