Article 2A — Leases · Section 2a-214

UCC § 2a-214

Quick Answer

What does UCC § 2a-214 cover?

A comprehensive guide to UCC § 2a-214, addressing the modification, rescission, or waiver of leases under Article 2A.

Source: U.C.C. § 2a-214

Official Text
A lease may be modified or rescinded by a written agreement or by the actions of the parties that demonstrate their agreement to change the terms, despite any prior requirements that the modification or waiver be in writing.
Plain Language

UCC § 2a-214 allows the terms of a lease agreement to be modified or canceled through written agreements or mutual conduct of the parties, even if the original lease required any changes to be in writing. This flexibility facilitates alterations in leasing arrangements more easily.

Key Definitions

Lease

A contract whereby one party (the lessor) grants another party (the lessee) the right to use property for a specified time in exchange for payment.

Modification

A change to the terms of a lease agreement that may alter the obligations of the parties.

Practical Examples

Example 1

A landlord and tenant agree verbally to extend the lease term. Under UCC § 2a-214, this extension may be valid even if the original lease required written modifications.

Example 2

A business leasing equipment performs payments incorrectly, but both parties continue to honor the revised payment arrangement without a written agreement.

Common Exam Issues
  • Determine whether a modification of a lease requires written confirmation under UCC § 2a-214.
  • Assess how the conduct of parties can demonstrate agreement to modify lease terms despite the original lease’s formality requirements.
Related Sections
  • ucc-2a-201
  • ucc-2a-202

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