Article 2A — Leases · Section 2a-201
Explore UCC § 2a-201 which outlines the scope and applicability of leases under Article 2A.
Source: U.C.C. § 2a-201
A lease of goods is a transfer of the right to possession and use of goods for a term in return for consideration. A lease may be created in any manner sufficient to show an agreement, including conduct by both parties that recognizes the existence of such a lease.
UCC § 2a-201 establishes that a lease allows a party to possess and use goods for a specific duration in exchange for payment. Leases can be formed through explicit agreements or through the behavior of the parties that suggests a lease agreement exists.
An agreement where one party (the lessor) provides the right to use property (the leased goods) to another party (the lessee) for a specified period in exchange for rent.
The party who grants the lease, allowing another to use the goods.
The party who receives the lease, obtaining rights to use the goods.
Example 1
A rental car agreement where the rental company allows the renter to use a vehicle for a specified duration in exchange for payment.
Example 2
A company leasing office equipment from a supplier, where the contract outlines the duration of use and payment terms.