Effective – 28 Aug 1992 400.2A-201. Statute of frauds. — (1) A lease contract is not enforceable by way of action or defense unless: (a) the total payments to be made under the lease contract, excluding payments for options to renew or buy, are less than one thousand dollars; or (b) there is a writing, […]
Effective – 28 Aug 1992 400.2A-202. Final written expression — parol or extrinsic evidence. — Terms with respect to which the confirmatory memoranda of the parties agree or which are otherwise set forth in a writing intended by the parties as a final expression of their agreement with respect to such terms as are included […]
Effective – 28 Aug 1992 400.2A-203. Seals inoperative. — The affixing of a seal to a writing evidencing a lease contract or an offer to enter into a lease contract does not render the writing a sealed instrument and the law with respect to sealed instruments does not apply to the lease contract or offer. […]
Effective – 28 Aug 1992 400.2A-204. Formation in general. — (1) A lease contract may be made in any manner sufficient to show agreement, including conduct by both parties which recognizes the existence of a lease contract. (2) An agreement sufficient to constitute a lease contract may be found although the moment of its making […]
Effective – 28 Aug 1992 400.2A-205. Firm offers. — An offer by a merchant to lease goods to or from another person in a signed writing that by its terms gives assurance it will be held open is not revocable, for lack of consideration, during the time stated or, if no time is stated, for […]
Effective – 28 Aug 1992 400.2A-206. Offer and acceptance in formation of lease contract. — (1) Unless otherwise unambiguously indicated by the language or circumstances, an offer to make a lease contract must be construed as inviting acceptance in any manner and by any medium reasonable in the circumstances. (2) If the beginning of a […]
Effective – 28 Aug 1992 400.2A-207. Course of performance or practical construction. — (1) If a lease contract involves repeated occasions for performance by either party with knowledge of the nature of the performance and opportunity for objection to it by the other, any course of performance accepted or acquiesced in without objection is relevant […]
Effective – 28 Aug 1992 400.2A-208. Modification, rescission and waiver. — (1) An agreement modifying a lease contract needs no consideration to be binding. (2) A signed lease agreement that excludes modification or rescission except by a signed writing may not be otherwise modified or rescinded, but, except as between merchants, such a requirement on […]
Effective – 28 Aug 1992 400.2A-209. Lessee under finance lease as beneficiary of supply contract. — (1) The benefit of a supplier’s promises to the lessor under the supply contract and of all warranties, whether express or implied, including those of any third party provided in connection with or as part of the supply contract […]
Effective – 28 Aug 1992 400.2A-210. Express warranties. — (1) Express warranties by the lessor are created as follows: (a) Any affirmation of fact or promise made by the lessor to the lessee which relates to the goods and becomes part of the basis of the bargain creates an express warranty that the goods will […]
Effective – 28 Aug 1992 400.2A-211. Warranties against interference and against infringement — lessee’s obligation against infringement. — (1) There is in a lease contract a warranty that for the lease term no person holds a claim to or interest in the goods that arose from an act or omission of the lessor, other than […]
Effective – 28 Aug 1992 400.2A-212. Implied warranty of merchantability. — (1) Except in a finance lease, a warranty that the goods will be merchantable is implied in a lease contract if the lessor is a merchant with respect to goods of that kind. (2) Goods to be merchantable must be at least such as […]
Effective – 28 Aug 1992 400.2A-213. Implied warranty of fitness for particular purpose. — Except in a finance lease, if the lessor at the time the lease contract is made has reason to know of any particular purpose for which the goods are required and that the lessee is relying on the lessor’s skill or […]
Effective – 28 Aug 1992 400.2A-214. Exclusion or modification of warranties. — (1) Words or conduct relevant to the creation of an express warranty and words or conduct tending to negate or limit a warranty must be construed wherever reasonable as consistent with each other; but, subject to the provisions of section 400.2A-202 on parole […]
Effective – 28 Aug 1992 400.2A-215. Cumulation and conflict of warranties express or implied. — Warranties, whether express or implied, must be construed as consistent with each other and as cumulative, but if that construction is unreasonable, the intention of the parties determines which warranty is dominant. In ascertaining that intention the following rules apply: […]
Effective – 28 Aug 1992 400.2A-216. Third-party beneficiaries of express and implied warranties. — A warranty to or for the benefit of a lessee under this Article, whether express or implied, extends to any natural person who is in the family or household of the lessee or who is a guest in the lessee’s home […]
Effective – 28 Aug 1992 400.2A-217. Identification. — Identification of goods as goods to which a lease contract refers may be made at any time and in any manner explicitly agreed to by the parties. In the absence of explicit agreement, identification occurs: (a) when the lease contract is made if the lease contract is […]
Effective – 28 Aug 1992 400.2A-218. Insurance and proceeds. — (1) A lessee obtains an insurable interest when existing goods are identified to the lease contract even though the goods identified are nonconforming and the lessee has an option to reject them. (2) If a lessee has an insurable interest only by reason of the […]
Effective – 28 Aug 1992 400.2A-219. Risk of loss. — (1) Except in the case of a finance lease, risk of loss is retained by the lessor and does not pass to the lessee. In the case of a finance lease, risk of loss passes to the lessee. (2) Subject to the provisions of this […]
Effective – 28 Aug 1992 400.2A-220. Effect of default on risk of loss. — (1) Where risk of loss is to pass to the lessee and the time of passage is not stated: (a) If a tender or delivery of goods so fails to conform to the lease contract as to give a right of […]
