DIVISION 10. PERSONAL PROPERTY LEASES [10101. - 10600.]

Division 10 repealed and added by Stats. 1988, Ch. 1359, Sec. 5.

§§ 10101–10600 · 76 sections

CHAPTER 1. General Provisions §§ 10101–10107 · 7 sections
- § 10101 This division shall be known and may be cited as the Uniform Commercial Code—Leases.
- § 10102 (a) This division applies to any transaction, regardless of form, that creates a lease and, in the case of a hybrid lease, it applies to the extent provided in…
- § 10103 (a) In this division, unless the context otherwise requires: (1) “Buyer in ordinary course of business” means a person who, in good faith and without knowledge…
- § 10104 (a) A lease, although subject to this division, is also subject to any applicable: (1) Certificate of title statute of this state, including the provisions of…
- § 10105 Subject to the provisions of subdivision (c) of Section 10304 and subdivision (c) of Section 10305, with respect to goods covered by a certificate of title…
- § 10106 (a) If the law chosen by the parties to a consumer lease is that of a jurisdiction other than a jurisdiction in which the lessee resides at the time the lease…
- § 10107 Any claim or right arising out of an alleged default or breach of warranty may be discharged in whole or in part without consideration by a waiver or…
CHAPTER 2. Formation and Construction of Lease Contract §§ 10201–10221 · 18 sections
- § 10201 (a) A lease contract is not enforceable by way of action or defense unless: (1) In a lease contract that is not a consumer lease, the total payments to be made…
- § 10202 Terms with respect to which the confirmatory memoranda of the parties agree or which are otherwise set forth in a record intended by the parties as a final…
- § 10204 (a) A lease contract may be made in any manner sufficient to show agreement, including conduct by both parties which recognizes the existence of a lease…
- § 10205 An offer by a merchant to lease goods to or from another person in a signed record that by its terms gives assurance it will be held open is not revocable, for…
- § 10206 (a) Unless otherwise unambiguously indicated by the language or circumstances, an offer to make a lease contract must be construed as inviting acceptance in…
- § 10208 (a) An agreement modifying a lease contract needs no consideration to be binding. (b) A signed lease agreement that excludes modification or rescission except…
- § 10209 (a) The benefit of a supplier’s promises to the lessor under the supply contract and of all warranties, whether express or implied, including those of any…
- § 10210 (a) Express warranties by the lessor are created as follows: (1) Any affirmation of fact or promise made by the lessor to the lessee which relates to the goods…
- § 10211 (a) There is in a lease contract a warranty that for the lease term no person holds a claim to or interest in the goods that arose from an act or omission of…
- § 10212 (a) Except in a finance lease, a warranty that the goods will be merchantable is implied in a lease contract if the lessor is a merchant with respect to goods…
- § 10213 Except in a finance lease, if the lessor at the time the lease contract is made has reason to know of any particular purpose for which the goods are required…
- § 10214 (a) Words or conduct relevant to the creation of an express warranty and words or conduct tending to negate or limit a warranty must be construed wherever…
- § 10215 Warranties, whether express or implied, must be construed as consistent with each other and as cumulative, but if that construction is unreasonable, the…
- § 10217 Identification of goods as goods to which a lease contract refers may be made at any time and in any manner explicitly agreed to by the parties. In the absence…
- § 10218 (a) A lessee obtains an insurable interest when existing goods are identified to the lease contract even though the goods identified are nonconforming and the…
- § 10219 (a) Except in the case of a finance lease, risk of loss is retained by the lessor and does not pass to the lessee. In the case of a finance lease, risk of loss…
- § 10220 (a) Where risk of loss is to pass to the lessee and the time of passage is not stated: (1) If a tender or delivery of goods so fails to conform to the lease…
- § 10221 If a lease contract requires goods identified when the lease contract is made, and the goods suffer casualty without fault of the lessee, the lessor, or the…
CHAPTER 3. Effect of Lease Contract §§ 10301–10311 · 11 sections
- § 10301 Except as otherwise provided in this division, a lease contract is effective and enforceable according to its terms between the parties, against purchasers of…
- § 10302 Except as otherwise provided in this division, each provision of this division applies whether the lessor or a third party has title to the goods, and whether…
- § 10303 (a) As used in the section, “creation of a security interest” includes the sale of a lease contract that is subject to Division 9 (commencing with Section…
- § 10304 (a) Subject to Section 10303, a subsequent lessee from a lessor of goods under an existing lease contract obtains, to the extent of the leasehold interest…
- § 10305 (a) Subject to the provisions of Section 10303, a buyer or sublessee from the lessee of goods under an existing lease contract obtains, to the extent of the…
- § 10306 If a person in the ordinary course of his or her business furnishes services or materials with respect to goods subject to a lease contract, a lien upon those…
- § 10307 (a) Except as otherwise provided in Section 10306, a creditor of a lessee takes subject to the lease contract. (b) Except as otherwise provided in subdivision…
- § 10308 (a) A creditor of a lessor in possession of goods subject to a lease contract may treat the lease contract as void if as against the creditor retention of…
- § 10309 (a) In this section: (1) Goods are “fixtures” when they become so related to particular real estate that an interest in them arises under real estate law; (2)…
- § 10310 (a) Goods are “accessions” when they are installed in or affixed to other goods. (b) The interest of a lessor or a lessee under a lease contract entered into…
- § 10311 Nothing in this division prevents subordination by agreement by any person entitled to priority.
CHAPTER 4. Performance of Leased Contract: Repudiated, Substituted, and Excused §§ 10401–10407 · 7 sections
- § 10401 (a) A lease contract imposes an obligation on each party that the other’s expectation of receiving due performance will not be impaired. (b) If reasonable…
- § 10402 (a) If either party repudiates a lease contract, other than a consumer lease, with respect to a performance not yet due under the lease contract, the loss of…
- § 10403 (a) Until the repudiating party’s next performance is due, the repudiating party can retract the repudiation unless, since the repudiation, the aggrieved party…
- § 10404 (a) If without fault of the lessee, the lessor, and the supplier, the agreed berthing, loading, or unloading facilities fail or the agreed type of carrier…
- § 10405 Subject to Section 10404 on substituted performance, the following rules apply: (1) Delay in delivery or nondelivery in whole or in part by a lessor or a…
- § 10406 (a) If the lessee receives notification of a material or indefinite delay or an allocation justified under Section 10405, the lessee may by written…
- § 10407 (a) In the case of a finance lease that is not a consumer lease the lessee’s promises under the lease contract become irrevocable and independent upon the…
CHAPTER 5. Default §§ 10501–10532 · 32 sections
1. ARTICLE 1. In General §§ 10501–10507 · 7 sections
  - § 10501 (a) Whether the lessor or the lessee is in default under a lease contract is determined by the lease agreement and this division. (b) If the lessor or the…
  - § 10502 Except as otherwise provided in this division or the lease agreement, the lessor or lessee in default under the lease contract is not entitled to notice of…
  - § 10503 (a) Except as otherwise provided in this division, the lease agreement may include rights and remedies for default in addition to or in substitution for those…
  - § 10504 (a) Damages payable by either party for default, or any other act or omission, including indemnity for loss or diminution of anticipated tax benefits or loss…
  - § 10505 (a) On cancellation of the lease contract, all obligations that are still executory on both sides are discharged, but any right based on prior default or…
  - § 10506 (a) An action for default under a lease contract, including breach of warranty or indemnity, must be commenced within four years after the cause of action…
  - § 10507 (a) Damages based on market rent (Section 10519 or 10528) are determined according to the rent for the use of the goods concerned for a lease term identical to…
2. ARTICLE 2. Default by Lessor §§ 10508–10522 · 15 sections
  - § 10508 (a) If a lessor fails to deliver the goods in conformity to the lease contract (Section 10509) or repudiates the lease contract (Section 10402), or a lessee…
  - § 10509 (a) Subject to the provisions of Section 10510 on default in installment lease contracts, if the goods or the tender or delivery fail in any respect to conform…
  - § 10510 (a) Under an installment lease contract, a lessee may reject any delivery that is nonconforming if the nonconformity substantially impairs the value of that…
  - § 10511 (a) Subject to any security interest of a lessee (subdivision (e) of Section 10508), if a lessor or a supplier has no agent or place of business at the market…
  - § 10512 (a) Except as otherwise provided with respect to goods that threaten to decline in value speedily (Section 10511) and subject to any security interest of a…
  - § 10513 (a) If any tender or delivery by the lessor or the supplier is rejected because it is nonconforming and the time for performance has not yet expired, the…
  - § 10514 (a) In rejecting goods, a lessee’s failure to state a particular defect that is ascertainable by reasonable inspection precludes the lessee from relying on the…
  - § 10515 (a) Acceptance of goods occurs after the lessee has had a reasonable opportunity to inspect the goods and (1) The lessee signifies or acts with respect to the…
  - § 10516 (a) A lessee must pay rent for any goods accepted in accordance with the lease contract, with due allowance for goods rightfully rejected or not delivered. (b)…
  - § 10517 (a) A lessee may revoke acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to the lessee if the lessee has accepted it:…
  - § 10518 (a) After a default by a lessor under the lease contract of the type described in subdivision (a) of Section 10508, or, if agreed, after other default by the…
  - § 10519 (a) Except as otherwise provided with respect to damages liquidated in the lease agreement (Section 10504) or otherwise determined pursuant to agreement of the…
  - § 10520 (a) Incidental damages resulting from a lessor’s default include expenses reasonably incurred in inspection, receipt, transportation, and care and custody of…
  - § 10521 (a) Specific performance may be decreed if the goods are unique or in other proper circumstances. (b) A decree for specific performance may include any terms…
  - § 10522 (a) Subject to subdivision (b) and even though the goods have not been shipped, a lessee who has paid a part or all of the rent and security for goods…
3. ARTICLE 3. Default by Lessee §§ 10523–10532 · 10 sections
  - § 10523 (a) If a lessee wrongfully rejects or revokes acceptance of goods or fails to make a payment when due or repudiates with respect to a part or the whole, then,…
  - § 10524 (a) After a default by the lessee under the lease contract of the type described in subdivision (a) of, or paragraph (1) of subdivision (c) of, Section 10523…
  - § 10525 (a) If a lessor discovers the lessee to be insolvent, the lessor may refuse to deliver the goods. (b) After a default by the lessee under the lease contract of…
  - § 10526 (a) A lessor may stop delivery of goods in the possession of a carrier or other bailee if the lessor discovers the lessee to be insolvent and may stop delivery…
  - § 10527 (a) After a default by a lessee under the lease contract of the type described in subdivision (a) of, or paragraph (1) of subdivision (c) of, Section 10523 or…
  - § 10528 (a) Except as otherwise provided with respect to damages liquidated in the lease agreement (Section 10504) or otherwise determined pursuant to agreement of the…
  - § 10529 (a) After default by the lessee under the lease contract of the type described in subdivision (a) of, or paragraph (1) of subdivision (c) of, Section 10523 or,…
  - § 10530 Incidental damages to an aggrieved lessor include any commercially reasonable charges, expenses, or commissions incurred in stopping delivery, in the…
  - § 10531 (a) If a third party so deals with goods that have been identified to a lease contract as to cause actionable injury to a party to the lease contract (1) the…
  - § 10532 In addition to any other recovery permitted by this division or other law, the lessor may recover from the lessee an amount that will fully compensate the…
CHAPTER 6. Transition Provisions § 10600 · 1 section
- § 10600 This division shall apply to all lease contracts that are first made or that first become effective between the parties on or after January 1, 1990. This…