Article 2A — Leases · Section 2a-102
A concise guide to UCC § 2a-102, which provides the scope of Article 2A concerning leases.
Source: U.C.C. § 2a-102
This article applies to any transaction, regardless of form, that creates a lease of goods. A lease is a transfer of the right to possession and use of goods for a term in return for consideration.
UCC § 2a-102 governs leases of personal property. It encompasses any transaction that grants a person the right to use goods for a specified period in exchange for payment.
A lease is a contract that allows one party the right to use and possess goods owned by another party in exchange for payment.
Goods refer to all things that are movable at the time of identification to the lease contract.
Example 1
A company leases a fleet of vehicles for its delivery service, thus paying a monthly fee to use the vehicles without owning them.
Example 2
An individual leases a copier machine for an office, agreeing to pay a fixed amount every month for a two-year period.