Article 2A — Leases · Section 2a-401
This section outlines the conditions under which a lease of goods may be governed under the Uniform Commercial Code, focusing on the rights and obligations of both the lessor and lessee.
Source: U.C.C. § 2a-401
A lease contract may be modified in any manner agreed to by the parties. A lease contract that is established by an agreement to lease goods must be in writing if it is for a term of more than one year.
UCC § 2a-401 indicates that lease contracts can be modified by mutual agreement, and if a lease term exceeds one year, it must be documented in writing to be enforceable.
The party who leases goods to another.
The party who leases goods from another.
Example 1
A business leases equipment from a supplier and later agrees to extend the lease verbally, which would require written documentation if the extension exceeds one year.
Example 2
A lessee may negotiate terms with the lessor to change the lease provisions, such as payment schedule or maintenance responsibilities, provided both parties consent to the modifications.