P-40.1, r. 3 - Regulation respecting the application of the Consumer Protection Act

Section 69.4.1 Disposition versions

2019-08-01

69.4.1. A contract of lease with guaranteed residual value must comply with the following standard contract and provide as many lines as necessary to meet all the requirements:

(CONSUMER PROTECTION ACT, S. 150.22)

CONTRACT OF LEASE WITH RESIDUAL VALUE GUARANTEED BY THE CONSUMER

Date: .............. (date on which contract is entered into)

Place: .............. (place where contract is entered into)

.............. (name of merchant)

..............

.............. (address of merchant)

..............

.................................................................................... (where applicable, technological address of merchant)

(name of consumer)

..............

.............. (address of consumer)

Description of the object of the contract: .............. .............. (make, model, serial number, year)

1.	Total value of goods
	(a) Retail price	$........
	(b) Preparation, delivery and installation charges	$........
	(c) Other ..............................	$........
	(specify)
	Total	$........
2.	Payment on account (except applicable taxes)
	(a) Trade-in	$........
	(b) First instalment	$........
	(c) Instalment or instalments paid in advance, other than (b) .....................................         (specify which)	$........
	(d) Other amount received before the start of the leasing period, including the value of a payment instrument payable on demand	$........
	Total	$........
3.	Amount of net obligation (1 - 2)	$========
4.	Instalments
	(a) (i) .................... X ........ = (instalment)             (number)	$........
	(ii) Last instalment (if less than i)	$........
	(iii) Total of instalments (i + ii)	$========
	(b) (i) .................... + ........ = (instalment)              (taxes)	$........ (periodic payment)
	(ii) .................... X ........ = (instalment) (number)	$........
	(iii) .................... + ........ = (last instalment)     (taxes)	$........
	(iv) Total of instalments (ii + iii)	$========
5.	Amount of instalment obligation
	(a) Total of instalments minus those included in the payment on account (4 (a) iii - 2 (b)and 2 (c))	$........
	b) Residual value of goods (wholesale value at the end of the leasing period)	$........
	Total	$========
6.	Implied credit charges and rate
	(a) Implied credit charges (5 - 3)	$........
	(b) Leasing period	..... months
	(c) Implied annual credit rate	======== %
7. MAXIMUM OBLIGATION OF THE CONSUMER
(not including applicable taxes and charges relating to the degree of use of the goods
	(2 + 5)	$========
The obligation of the consumer is payable
at ..............
(address)
The amounts to be paid during the leasing period payable in .............. instalments (number) of .............. (amount) on the day of each consecutive (period) from ..............(date of delivery of goods) .............. and a final instalment of $.............. (amount) on .............. (date).
The consumer shall defray the residual value if the consumer acquires the goods during the leasing period If the consumer elects not to exercise this option, the consumer guarantees that the merchant will obtain from alienation of the goods by onerous title within a reasonable time of their return a value equal to or greater than the residual value and that, if the merchant fails to obtain at least such value, the consumer will assume the difference up to 20% of the residual value.
The consumer shall give to the merchant as acknowledgement of or security for the consumer’s obligation the following object or document:
.............. (description)
The merchant shall deliver the goods being the subject of this contract on the making of the contract (either box must be checked)
	⃞ Yes ⃞ No
If “no”, on ..............
(date of delivery of goods)

O.C. 994-2018, s. 42.