Article 2A — Leases · Section 2a-502
This section addresses the requirements for a valid lease and its enforcement under the Uniform Commercial Code.
Source: U.C.C. § 2a-502
A lease is enforceable even though it is not in a signed writing if the lessor is in possession of the goods sold or if the lessee has taken possession of the goods and there is any writing that describes the goods.
UCC § 2a-502 states that a lease can still be enforced even if it does not have a signed writing, provided that the lessor has possession of the goods or the lessee has taken possession. Some form of writing that describes the goods is needed to validate the lease.
The person or entity that leases out the goods.
The person or entity that leases the goods.
Movable items that can be leased under this section.
Example 1
A company leases machinery and allows the lessee to take possession before a formal lease is signed, valid under UCC § 2a-502.
Example 2
A business is operating equipment without a signed lease but has a detailed email agreement describing the equipment, satisfying the writing requirement.