Title UCC, Uniform Commercial Code

Section 2--718. Liquidation or Limitation of Damages; Deposits. (1) Damages for breach by either party may be liquidated in the agreement but only at an amount which is reasonable in the light of the anticipated or actual harm caused by the breach, the difficulties of proof of lo…

Section 2--719. Contractual Modification or Limitation of Remedy. (1) Subject to the provisions of subsections (2) and (3) of this section and of the preceding section on liquidation and limitation of damages, (a) the agreement may provide for remedies in addition to or in substi…

Section 2--720. Effect of "Cancellation" or "Rescission" on Claims for Antecedent Breach. Unless the contrary intention clearly appears, expressions of "cancellation" or "rescission" of the contract or the like shall not be construed as a renunciation or discharge of any claim in…

Section 2--721. Remedies for Fraud. Remedies for material misrepresentation or fraud include all remedies available under this Article for non-fraudulent breach. Neither rescission or a claim for rescission of the contract for sale nor rejection or return of the goods shall bar o…

Section 2--722. Who Can Sue Third Parties for Injury to Goods. Where a third party so deals with goods which have been identified to a contract for sale as to cause actionable injury to a party to that contract (a) a right of action against the third party is in either party to t…

Section 2--723. Proof of Market Price: Time and Place. (1) If an action based on anticipatory repudiation comes to trial before the time for performance with respect to some or all of the goods, any damages based on market price (Section 2--708 or Section 2--713) shall be determi…

Section 2--724. Admissibility of Market Quotations. Whenever the prevailing price or value of any goods regularly bought and sold in any established commodity market is in issue, reports in official publications or trade journals or in newspapers or periodicals of general circula…

Section 2--725. Statute of Limitations in Contracts for Sale. (1) An action for breach of any contract for sale must be commenced within four years after the cause of action has accrued. By the original agreement the parties may reduce the period of limitation to not less than on…

Section 2-A-101. Short Title. This Article shall be known and may be cited as the Uniform Commercial Code - Leases.

Section 2-A-102. Scope. (1) This Article applies to any transaction, regardless of form, that creates a lease and, in the case of a hybrid lease, it applies to the extent provided in subsection (2). (2) In a hybrid lease: (a) if the lease-of-goods aspects do not predominate: (i) …

Section 2-A-103. 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 is in violation of the ownership rights or secu…

Section 2-A-104. 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; (b) certificate of title statute of another jurisdiction (Section 2-A-105); or (c) consumer protection l…

Section 2-A-105. Territorial Application of Article to Goods Covered by Certificate of Title. Subject to the provisions of Sections 2-A-304(3) and 2-A-305(3), with respect to goods covered by a certificate of title issued under a statute of this state or of another jurisdiction, …

Section 2-A-106. 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 …

Section 2-A-107. 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 aggrieve…

Section 2-A-108. 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 co…

Section 2-A-109. 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 …

Section 2-A-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 $1,000; or (b) there is a record, signed by th…

Section 2-A-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 record intended by the parties as a final expression of their agreement with respect to such t…

Section 2-A-203. 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 offe…

Section 2-A-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 althou…

Section 2-A-205. 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 t…

Section 2-A-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 circum…

Section 2-A-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 not be otherwise modified or rescinded, but,…

Section 2-A-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 …

Section 2-A-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 g…

Section 2-A-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 l…

Section 2-A-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…

Section 2-A-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 …

Section 2-A-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 provi…

Section 2-A-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 i…

Section 2-A-216. Third-Party Beneficiaries of Express or Implied Warranties. A warranty to or for the benefit of a lessee under this Article, whether express or implied, extends to any natural person if it is reasonable to expect that such person may use, consume, or be affected …

Section 2-A-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: (1) when the lease contract is made if th…

Section 2-A-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 o…

Section 2-A-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 Article on the effect of defa…

Section 2-A-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 rejection, the risk of their loss remain…

Section 2-A-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 goods suffer casualty before risk of loss pa…

Section 2-A-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 creditors of the parties.

Section 2-A-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 third party has possession of the goods, no…

Section 2-A-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 sale of a lease contract that is subject to…

Section 2-A-304. Subsequent Lease of Goods by Lessor. (1) Subject to Section 2-A-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 interest in the goods that the lessor had …

Section 2-A-305. Sale or Sublease of Goods by Lessee. (1) Subject to the provisions of Section 2-A-303, 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 …

Section 2-A-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 in the possession of that person given by s…

Section 2-A-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 2-A-306, a creditor of a lessee takes subject to the lease contract. (2) Except as otherwise provided in subsection (…

Section 2-A-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 fraudulent under any statute or rule of law, but re…

Section 2-A-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 "fixture filing" is the filing, in the office…

Section 2-A-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 before the goods became accessions is superior…

Section 2-A-311. Priority Subject to Subordination. Nothing in this Article prevents subordination by agreement by any person entitled to priority.

Section 2-A-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 insecurity arise with respect to the performance …

Section 2-A-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 contract to the other, the aggrieved party may…