Lessee in the Ordinary Course of Business Law and Legal Definition
Lessee in the ordinary course of business means a person who leases from another person in good faith in the ordinary course of the business of selling or leasing goods, without knowledge of the fact that the lease is in violation of a third party’s ownership right, security interest or leasehold interest. However, a pawnbroker is not a lessee in the ordinary course of business.
Following is an example of a state statute defining the term ‘lessee in ordinary course of business. Pursuant to ORC Ann. 1310.01 (A) (15) "Lessee in ordinary course of business" means a person who in good faith and without knowledge that the lease to the person is in violation of the ownership rights or security interest or leasehold interest of a third party in the goods leases in ordinary course from a person in the business of selling or leasing goods of that kind. "Lessee in ordinary course of business" does not include a pawnbroker. "Leasing" may be for cash, by exchange of other property, or on secured or unsecured credit and includes receiving goods or documents of title under a preexisting lease contract. "Leasing" does not include a transfer in bulk or as security for or in total or partial satisfaction of a money debt.
Legal Definition list
- Lessee
- Less-Lethal Weapon
- Less Than Carload Lot
- Less Developed Country [Internal Revenue]
- Lesion
- Lessee in the Ordinary Course of Business
- Lesser Included Offense
- Lessor
- Lethal Injection
- Lethal Weapon
- Letter Bomb
