Article 2A — Leases · Section 2a-103
Overview of UCC § 2a-103, detailing key definitions and principles related to leases under Article 2A.
Source: U.C.C. § 2a-103
UCC § 2a-103 defines terms used in Article 2A regarding leases, including 'lessee', 'lessor', 'lease', 'finance lease', and other related definitions necessary for the understanding and application of lease agreements.
UCC § 2a-103 provides definitions for terms used in the context of lease agreements. It clarifies who the parties are (lessee and lessor) and outlines the specific concepts integral to understanding leasing under Article 2A.
A person or entity that leases or rents goods from another.
A person or entity that leases or rents goods to another.
A contract for the possession of goods for a specified term in exchange for payment.
A lease that is intended to provide the lessee with the tax benefits of ownership.
Example 1
A business enters into a lease agreement for office space, becoming the lessee while the property owner is the lessor.
Example 2
A company leases equipment for a construction project, where the leasing terms fulfill the definition of a finance lease.
Example 3
An individual leases a car from a dealership, taking possession of the vehicle under the terms outlined in a lease contract.