Chapter 810, COMMERCIAL CODE

(810 ILCS 5/2A-208) (from Ch. 26, par. 2A-208) Sec. 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 record may …

(810 ILCS 5/2A-209) (from Ch. 26, par. 2A-209) Sec. 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 thi…

(810 ILCS 5/2A-210) (from Ch. 26, par. 2A-210) Sec. 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 bar…

(810 ILCS 5/2A-211) (from Ch. 26, par. 2A-211) Sec. 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 …

(810 ILCS 5/2A-212) (from Ch. 26, par. 2A-212) Sec. 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 …

(810 ILCS 5/2A-213) (from Ch. 26, par. 2A-213) Sec. 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 t…

(810 ILCS 5/2A-214) (from Ch. 26, par. 2A-214) Sec. 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…

(810 ILCS 5/2A-215) (from Ch. 26, par. 2A-215) Sec. 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…

(810 ILCS 5/2A-216) (from Ch. 26, par. 2A-216) Sec. 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 person who may reasonably be expected to use, consu…

(810 ILCS 5/2A-217) (from Ch. 26, par. 2A-217) Sec. 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…

(810 ILCS 5/2A-218) (from Ch. 26, par. 2A-218) Sec. 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. …

(810 ILCS 5/2A-219) (from Ch. 26, par. 2A-219) Sec. 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 provi…

(810 ILCS 5/2A-220) (from Ch. 26, par. 2A-220) Sec. 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 …

(810 ILCS 5/2A-221) (from Ch. 26, par. 2A-221) Sec. 2A-221. Casualty to identified goods. If a lease contract requires goods identified when the lease contract is made, and the goods suffer casualty without fault of the lessee, the lessor, or the supplier before delivery, or the …

(810 ILCS 5/2A-301) (from Ch. 26, par. 2A-301) Sec. 2A-301. Enforceability of lease contract. Except as otherwise provided in this Article, a lease contract is effective and enforceable according to its terms between the parties, against purchasers of the goods and against credit…

(810 ILCS 5/2A-302) (from Ch. 26, par. 2A-302) Sec. 2A-302. Title to and possession of goods. Except as otherwise provided in this Article, each provision of this Article applies whether the lessor or a third party has title to the goods, and whether the lessor, the lessee, or a …

(810 ILCS 5/2A-303) (from Ch. 26, par. 2A-303) Sec. 2A-303. Alienability of party's interest under lease contract or of lessor's residual interest in goods; delegation of performance; transfer of rights. (1) As used in this Section, "creation of a security interest" includes the …

(810 ILCS 5/2A-304) (from Ch. 26, par. 2A-304) Sec. 2A-304. Subsequent lease of goods by lessor. (1) Subject to Section 2A-303, a subsequent lessee from a lessor of goods under an existing lease contract obtains, to the extent of the leasehold interest transferred, the leasehold …

(810 ILCS 5/2A-305) (from Ch. 26, par. 2A-305) Sec. 2A-305. Sale or sublease of goods by lessee. (1) Subject to the provisions of Section 2A-303, a buyer or sublessee from the lessee of goods under an existing lease contract obtains, to the extent of the interest transferred, the…

(810 ILCS 5/2A-306) (from Ch. 26, par. 2A-306) Sec. 2A-306. Priority of certain liens arising by operation of law. If a person in the ordinary course of his or her business furnishes services or materials with respect to goods subject to a lease contract, a lien upon those goods …

(810 ILCS 5/2A-307) (from Ch. 26, par. 2A-307) Sec. 2A-307. Priority of liens arising by attachment or levy on, security interests in, and other claims to goods. (1) Except as otherwise provided in Section 2A-306, a creditor of a lessee takes subject to the lease contract. (2) Ex…

(810 ILCS 5/2A-308) (from Ch. 26, par. 2A-308) Sec. 2A-308. Special rights of creditors. (1) A creditor of a lessor in possession of goods subject to a lease contract may treat the lease contract as void if as against the creditor retention of possession by the lessor is fraudule…

(810 ILCS 5/2A-309) (from Ch. 26, par. 2A-309) Sec. 2A-309. Lessor's and lessee's rights when goods become fixtures. (1) In this Section: (a) goods are "fixtures" when they become so related to particular real estate that an interest in them arises under real estate law; (b) a "f…

(810 ILCS 5/2A-310) (from Ch. 26, par. 2A-310) Sec. 2A-310. Lessor's and lessee's rights when goods become accessions. (1) Goods are "accessions" when they are installed in or affixed to other goods. (2) The interest of a lessor or a lessee under a lease contract entered into bef…

(810 ILCS 5/2A-311) (from Ch. 26, par. 2A-311) Sec. 2A-311. Priority subject to subordination. Nothing in this Article prevents subordination by agreement by any person entitled to priority. (Source: P.A. 87-493.)

(810 ILCS 5/2A-401) (from Ch. 26, par. 2A-401) Sec. 2A-401. Insecurity; adequate assurance of performance. (1) A lease contract imposes an obligation on each party that the other's expectation of receiving due performance will not be impaired. (2) If reasonable grounds for insecu…

(810 ILCS 5/2A-402) (from Ch. 26, par. 2A-402) Sec. 2A-402. Anticipatory repudiation. If either party repudiates a lease contract with respect to a performance not yet due under the lease contract, the loss of which performance will substantially impair the value of the lease con…

(810 ILCS 5/2A-403) (from Ch. 26, par. 2A-403) Sec. 2A-403. Retraction of anticipatory repudiation. (1) Until the repudiating party's next performance is due, the repudiating party can retract the repudiation unless, since the repudiation, the aggrieved party has cancelled the le…

(810 ILCS 5/2A-404) (from Ch. 26, par. 2A-404) Sec. 2A-404. Substituted performance. (1) If without fault of the lessee, the lessor and the supplier, the agreed berthing, loading, or unloading facilities fail or the agreed type of carrier becomes unavailable or the agreed manner …

(810 ILCS 5/2A-405) (from Ch. 26, par. 2A-405) Sec. 2A-405. Excused performance. Subject to Section 2A-404 on substituted performance, the following rules apply: (a) Delay in delivery or nondelivery in whole or in part by a lessor or a supplier who complies with paragraphs (b) an…

(810 ILCS 5/2A-406) (from Ch. 26, par. 2A-406) Sec. 2A-406. Procedure on excused performance. (1) If the lessee receives notification of a material or indefinite delay or an allocation justified under Section 2A-405, the lessee may by written notification to the lessor as to any …

(810 ILCS 5/2A-407) (from Ch. 26, par. 2A-407) Sec. 2A-407. Irrevocable promises; finance leases. (1) In the case of a finance lease that is not a consumer lease the lessee's promises under the lease contract become irrevocable and independent upon the lessee's acceptance of the …

(810 ILCS 5/2A-501) (from Ch. 26, par. 2A-501) Sec. 2A-501. Default; procedure. (1) Whether the lessor or the lessee is in default under a lease contract is determined by the lease agreement and this Article. (2) If the lessor or the lessee is in default under the lease contract,…

(810 ILCS 5/2A-502) (from Ch. 26, par. 2A-502) Sec. 2A-502. Notice after default. Except as otherwise provided in this Article or the lease agreement, the lessor or lessee in default under the lease contract is not entitled to notice of default or notice of enforcement from the o…

(810 ILCS 5/2A-503) (from Ch. 26, par. 2A-503) Sec. 2A-503. Modification or impairment of rights and remedies. (1) Except as otherwise provided in this Article, the lease agreement may include rights and remedies for default in addition to or in substitution for those provided in…

(810 ILCS 5/2A-504) (from Ch. 26, par. 2A-504) Sec. 2A-504. Liquidation of damages. (1) Damages payable by either party for default, or any other act or omission, including indemnity for loss or diminution of anticipated tax benefits or loss or damage to lessor's residual interes…

(810 ILCS 5/2A-505) (from Ch. 26, par. 2A-505) Sec. 2A-505. Cancellation and termination and effect of cancellation, termination, rescission, or fraud on rights and remedies. (1) On cancellation of the lease contract, all obligations that are still executory on both sides are dis…

(810 ILCS 5/2A-506) (from Ch. 26, par. 2A-506) Sec. 2A-506. Statute of limitations. (1) An action for default under a lease contract, including breach of warranty or indemnity, must be commenced within 4 years after the cause of action accrued. By the original lease contract the …

(810 ILCS 5/2A-507) (from Ch. 26, par. 2A-507) Sec. 2A-507. Proof of market rent; time and place. (1) Damages based on market rent (Section 2A-519 or 2A-528) are determined according to the rent for the use of the goods concerned for a lease term identical to the remaining lease …

(810 ILCS 5/2A-508) (from Ch. 26, par. 2A-508) Sec. 2A-508. Lessee's remedies. (1) If a lessor fails to deliver the goods in conformity to the lease contract (Section 2A-509) or repudiates the lease contract (Section 2A-402), or a lessee rightfully rejects the goods (Section 2A-5…

(810 ILCS 5/2A-509) (from Ch. 26, par. 2A-509) Sec. 2A-509. Lessee's rights on improper delivery; rightful rejection. (1) Subject to the provisions of Section 2A-510 on default in installment lease contracts, if the goods or the tender or delivery fail in any respect to conform t…

(810 ILCS 5/2A-510) (from Ch. 26, par. 2A-510) Sec. 2A-510. Installment lease contracts; rejection and default. (1) Under an installment lease contract, a lessee may reject any delivery that is nonconforming if the nonconformity substantially impairs the value of that delivery an…

(810 ILCS 5/2A-511) (from Ch. 26, par. 2A-511) Sec. 2A-511. Merchant lessee's duties as to rightfully rejected goods. (1) Subject to any security interest of a lessee (Section 2A-508(5)), if a lessor or a supplier has no agent or place of business at the market of rejection, a me…

(810 ILCS 5/2A-512) (from Ch. 26, par. 2A-512) Sec. 2A-512. Lessee's duties as to rightfully rejected goods. (1) Except as otherwise provided with respect to goods that threaten to decline in value speedily (Section 2A-511) and subject to any security interest of a lessee (Sectio…

(810 ILCS 5/2A-513) (from Ch. 26, par. 2A-513) Sec. 2A-513. Cure by lessor of improper tender or delivery; replacement. (1) If any tender or delivery by the lessor or the supplier is rejected because nonconforming and the time for performance has not yet expired, the lessor or th…

(810 ILCS 5/2A-514) (from Ch. 26, par. 2A-514) Sec. 2A-514. Waiver of lessee's objections. (1) In rejecting goods, a lessee's failure to state a particular defect that is ascertainable by reasonable inspection precludes the lessee from relying on the defect to justify rejection o…

(810 ILCS 5/2A-515) (from Ch. 26, par. 2A-515) Sec. 2A-515. Acceptance of goods. (1) Acceptance of goods occurs after the lessee has had a reasonable opportunity to inspect the goods and (a) the lessee signifies or acts with respect to the goods in a manner that signifies to the …

(810 ILCS 5/2A-516) (from Ch. 26, par. 2A-516) Sec. 2A-516. Effect of acceptance of goods; notice of default; burden of establishing default after acceptance; notice of claim or litigation to person answerable over. (1) A lessee must pay rent for any goods accepted in accordance …

(810 ILCS 5/2A-517) (from Ch. 26, par. 2A-517) Sec. 2A-517. Revocation of acceptance of goods. (1) A lessee may revoke acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to the lessee if the lessee has accepted it: (a) except in the case of…

(810 ILCS 5/2A-518) (from Ch. 26, par. 2A-518) Sec. 2A-518. Cover; substitute goods. (1) After a default by a lessor under the lease contract of the type described in Section 2A-508(1), or, if agreed, after other default by the lessor, the lessee may cover by making any purchase …