supplier without relying primarily on the skill and judgment of the lessor;
(b) the equipment is acquired by the lessor in connection with a leasing agreement which, to the knowledge of the supplier, either has been made or is to be made between the lessor and the lessee; and
(c) the rentals payable under the leasing agreement are calculated so as to take into account in particular the amortisation of the whole or a substantial part of the cost of the equipment.
3. This Convention applies whether or not the lessee has or sub-sequently acquires the option to buy the equipment or to hold it on lease for a further period, and whether or not for a nominal price or rental.
4. This Convention applies to financial leasing transactions in relation to all equipment save that which is to be used primarily for the lessee's personal, family or household purposes.
Article 2
In the case of one or more sub-leasing transactions involving the same equipment, this Convention applies to each transaction which is a financial leasing transaction and is otherwise subject to this Convention as if the person from whom the first lessor (as defined in paragraph 1 of the previous article) acquired the equipment were the supplier and as if the agreement under which the equipment was so acquired were the supply agreement.
Article 3
1. This Convention applies when the lessor and the lessee have their places of business in different States and:
(a) those States and the State in which the supplier has its place of business are Contracting States; or
(b) both the supply agreement and the leasing agreement are governed by the law of a Contracting State.
2. A reference in this Convention to a party's place of business shall, if it has more than one place of business, mean the place of business which has the closest relationship to the relevant agreement and its performance, having regard to the circumstances known to or contemplated by the parties at any time before or at the conclusion of that agreement.
Article 4
1. The provisions of this Convention shall not cease to apply merely because the equipment has become a fixture to or incorporated in land.
2. Any question whether or not the equipment has become a fixture to or incorporated in land, and if so the effect on the rights inter se of the lessor and a person having real rights in the land, shall be determined by the law of the State where the land is situated.
Article 5
1. The application of this Convention may be excluded only if each of the parties to the supply agreement and each of the parties to the leasing agreement agree to exclude it.
2. Where the application of this Convention has not been excluded in accordance with the previous paragraph, the parties may, in their relations with each other, derogate from or vary the effect of any of its provisions except as stated in Articles 8 (3) and 13 (3) (b) and (4).
Article 6
1. In the interpretation of this Convention, regard is to be had to its object and purpose as set forth in the preamble, to its international character and to the need to promote uniformity in its application and the observance of good faith in international trade.
2. Questions concerning matters governed by this Convention which are not expressly settled in it are to be settled in conformity with the general principles on which it is based or, in the absence of such principles, in conformity with the law applicable by virtue of the rules of private international law.
Chapter II. RIGHTS AND DUTIES OF THE PARTIES
Article 7
1. (a) The lessor's real rights in the equipment shall be valid against the lessee's trustee in
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