Opinion ID: 380353
Heading Depth: 1
Heading Rank: 2

Heading: If A Financing Arrangement

Text: 31 For much the same reasons, no different result is reached if the lease was a financing arrangement rather than a true lease. Again the contemporaneous transaction principle requires that we construe the three documents together. Assuming now that the lease was a financing arrangement, the real economic effect of the transaction was a sale direct from Burroughs to Earman. That effect coalesces with the ESC's express purpose: a sale direct from Burroughs to Earman. The coalescence is all the more reason, under the contemporaneous transaction principle, to give effect to the ESC's unambiguous statement of Earman's rights against Burroughs. As stated by the Kansas Supreme Court, it would be anomalous if . . . commercial transactions (which are entered into by the device of a lease rather than a sale) were subject to different rules of law than other transactions which tend to have the identical economic result. Atlas Industries, Inc. v. National Cash Register Co., supra, 216 Kan. at 218, 531 P.2d at 45 (discussing and approving of the reasoning in Hertz Commercial Leasing Corp. v. Transportation Credit Clearing House, 59 Misc.2d 226, 298 N.Y.S.2d 392 (1969), rev'd on other grounds, 64 Misc.2d 910, 316 N.Y.S.2d 585 (1st Dept. 1970)).