A clause in a finance lease requiring the lessee to continue to make payments to the lessor even though the equipment leased is unsuitable, defective, or destroyed is c__________ clause.
A) unwitting
B) salutary
C) hell or high water
D) flying pigs

Question

Quizplus · Accepted Answer

The clause being described is commonly known as a "hell or high water" clause. This clause puts the responsibility of payment on the lessee no matter the circumstances, including if the equipment is defective or destroyed. Choice A, "unwitting," does not fit the definition. Choice B, "salutary," means beneficial or promoting health, which is not relevant in this context. Choice D, "flying pigs," is not related to the topic.

A Clause in a Finance Lease Requiring the Lessee to Continue