Title 8

NRS 104A.2103 Definitions and index of definitions. 1. In this Article unless the context otherwise requires: (a) “Buyer in ordinary course of business” means a person who, in good faith and without knowledge that the sale to him or her is in violation of the ownership, rights or…

NRS 104A.2104 Leases subject to other law. 1. A lease, although subject to this Article, is also subject to any applicable: (a) Certificate of title statute of this State, including any applicable provision of chapters 482, 488, 489 and 490 of NRS; (b) Certificate of title statut…

NRS 104A.2105 Territorial application of article to goods covered by certificate of title. Subject to the provisions of subsection 3 of NRS 104A.2304 and subsection 3 of NRS 104A.2305, with respect to goods covered by a certificate of title issued under a statute of this State or…

NRS 104A.2106 Limitation on power of parties to consumer lease to choose applicable law and judicial forum. 1. If the law chosen by the parties to a consumer lease is that of a jurisdiction other than a jurisdiction in which the lessee resides at the time the lease agreement beco…

NRS 104A.2107 Waiver or renunciation of claim or right after default. Any claim or right arising out of an alleged default or breach of warranty may be discharged in whole or in part without consideration by a waiver or renunciation in a signed record delivered by the aggrieved p…

NRS 104A.2108 Unconscionability. 1. If the court as a matter of law finds a lease contract or any clause of a lease contract to have been unconscionable at the time it was made the court may refuse to enforce the lease contract, or it may enforce the remainder of the lease contra…

NRS 104A.2109 Option to accelerate at will. 1. A term providing that one party or his or her successor in interest may accelerate payment or performance or require collateral or additional collateral “at will” or “when he or she deems himself or herself insecure” or in words of s…

NRS 104A.2201 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 $1,000; or (b) There is a record, signed by the pa…

NRS 104A.2202 Final 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 record intended by the parties as a final expression of their agreement with respect to such terms as are…

NRS 104A.2203 Seals inoperative. The affixing of a seal to a record evidencing a lease contract or an offer to enter into a lease contract does not render the record a sealed instrument and the law with respect to sealed instruments does not apply to the lease contract or offer. …

NRS 104A.2204 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 th…

NRS 104A.2205 Firm offers. An offer by a merchant to lease goods to or from another person in a signed record 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 a reasonable time…

NRS 104A.2206 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 circumstan…

NRS 104A.2208 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 not be otherwise modified or rescinded, but, exce…

NRS 104A.2209 Lessee under finance lease as beneficiary of supply contract. 1. The benefit of the 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 pa…

NRS 104A.2210 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…

NRS 104A.2211 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 lesso…

NRS 104A.2212 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: (a)…

NRS 104A.2213 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 …

NRS 104A.2214 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 provision…

NRS 104A.2215 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 d…

NRS 104A.2216 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 …

NRS 104A.2217 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: 1. When the lease contract is made if the le…

NRS 104A.2218 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 b…

NRS 104A.2219 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 Article on the effect of default o…

NRS 104A.2220 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 rejection, the risk of their loss remains wi…

NRS 104A.2221 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 goods suffer casualty before risk of loss passe…

NRS 104A.2301 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 creditors of the parties. (Added to NRS by 1989, 350…

NRS 104A.2302 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 third party has possession of the goods, notwit…

NRS 104A.2303 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 sale of a lease contract that is subject to Art…

NRS 104A.2304 Subsequent lease of goods by lessor. 1. Subject to the provisions of NRS 104A.2303, a subsequent lessee from a lessor of goods under an existing lease contract obtains, to the extent of the lease-hold interest transferred, the leasehold interest in the goods that th…

NRS 104A.2305 Sale or sublease of goods by lessee. 1. Subject to the provisions of NRS 104A.2303, a buyer or sublessee from the lessee of goods under an existing lease contract obtains, to the extent of the interest transferred, the leasehold interest in the goods that the lessee…

NRS 104A.2306 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 in the possession of that person given by stat…

NRS 104A.2307 Priority of liens arising by attachment or levy on, security interests in and other claims to goods. 1. Except as otherwise provided in NRS 104A.2306, a creditor of a lessee takes subject to the lease contract. 2. Except as otherwise provided in subsection 3 and in …

NRS 104A.2308 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 fraudulent under any statute or rule of law, but retent…

NRS 104A.2309 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 “fixture filing” is the filing, in the office whe…

NRS 104A.2310 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 before the goods became accessions is superior to a…

NRS 104A.2311 Priority subject to subordination. Nothing in this article prevents subordination by agreement by any person entitled to priority. (Added to NRS by 1991, 422) Part 4 Performance of Lease Contract: Repudiated, Substituted and Excused

NRS 104A.2401 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 insecurity arise with respect to the performance of ei…

NRS 104A.2402 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 contract to the other, the aggrieved party may: 1…

NRS 104A.2403 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 lease contract or materially changed the aggrieve…

NRS 104A.2404 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 of delivery otherwise becomes commercially impra…

NRS 104A.2405 Excused performance. Subject to NRS 104A.2404 on substituted performance, the following rules apply: 1. Delay in delivery or nondelivery in whole or in part by a lessor or a supplier who complies with subsections 2 and 3 is not a default under the lease contract if …

NRS 104A.2406 Procedure on excused performance. 1. If the lessee receives notification of a material or indefinite delay or an allocation justified under NRS 104A.2405, the lessee may by written notification to the lessor as to any goods involved, and with respect to all of the g…

NRS 104A.2407 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 goods. 2. A promise that has become irrevocable…

NRS 104A.2501 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, the party seeking enforcement has rights and re…