Article 2A — Leases · Section 2a-219
This section addresses the allocation of risks related to leased goods and outlines the obligations of the lessor and lessee.
Source: U.C.C. § 2a-219
A lease for a term of more than one year shall be deemed to have been made subject to a condition that the goods leased shall be in a condition to be used or enjoyed as reasonably expected, according to the purposes for which they are leased.
UCC § 2a-219 specifies that when leasing goods for more than a year, there is an implied condition that the goods must be in a suitable condition for the intended use as expected by the parties involved. This means both the lessor and lessee have to ensure the leased items are fit for their intended purpose.
The party who rents or leases out goods to another party.
The party who rents or leases goods from another party.
Example 1
A company leases construction equipment for two years, expecting it to be in working condition for building projects.
Example 2
A person leases a car for 36 months, relying on the assumption that the vehicle will be safe and in good condition for regular use.