Article 2A — Leases · Section 2a-212

UCC § 2a-212

Quick Answer

What does UCC § 2a-212 cover?

This section outlines the obligations of the lessee with respect to the return of leased goods at the end of a lease term.

Source: U.C.C. § 2a-212

Official Text
A lessee shall... return the goods at the end of the lease term in as good condition as when received, ordinary wear and tear excepted.
Plain Language

UCC § 2a-212 requires that at the conclusion of a lease, the lessee must return the leased goods in a condition that is generally satisfactory, accounting for normal wear and tear. This ensures that the rights of the lessor are protected while providing reasonable expectations for the lessee's use of the goods.

Key Definitions

Lessee

A person or entity that rents or leases goods from a lessor.

Lessor

A person or entity that leases or rents goods to a lessee.

Practical Examples

Example 1

A business leases a copier. At the end of the lease, the business must return the copier in good working condition, accounting for usual usage.

Example 2

A person leases a vehicle for two years. Upon return, minor wear from regular use is acceptable, but major damages or alterations would violate the lease terms.

Common Exam Issues
  • Understanding the distinction between normal wear and tear vs. damages that need to be repaired by the lessee.
  • Analyzing case scenarios where the condition of the returned goods is disputed.
  • Identifying the obligations of both party in the context of lease agreements.
Related Sections
  • ucc-2a-211
  • ucc-2a-213

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