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Lease of Photocopier - consumption is more than the ABC with two months left

Lease of Photocopier - consumption is more than the ABC with two months left

by Ronald Lizardo -
Number of replies: 2

Hi Mesdames/Sirs,

Just curious as to what the recourse is in printer/photocopier lease cases where the entire contract amount has been depleted and the contract period has two months remaining.
Should an extension of the contract be used as a remedy or an amendment?

e.g. consider a P1M contract involving lease of printer/photocopiers with a consumption-based monthly invoicing structure; as of May, the cumulative billing stands at P950k, with the contract scheduled to conclude in July.

In reply to Ronald Lizardo

Re: Lease of Photocopier - consumption is more than the ABC with two months left

by Jessie Salvador -

It depends on you lease contract. 

Is the contract consumption based? meaning based on number of copies re/produced? If yes, then there should be a clause that says the contract is deemed terminated if the consumables are depleted.

If there is none, the effects will be the same. Your agency cannot avail of copying services without incurring additional cost (which must be covered by a separate contract). The contract is ineffectual. Good as terminated.

 

In reply to Jessie Salvador

Re: Lease of Photocopier - consumption is more than the ABC with two months left

by Ronald Lizardo -
This is duly noted po sir. thank you po. In any case, therefore po, if the contract is deemed terminated, extension is not the remedy but to undergo procurement again?
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