reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-2 - Part 2 Formation and Construction of Lease Contract (440.2851...440.2871) › Section 440.2859 - Supply Contract; Extension of Benefits of Supplier Promises and of Warranties to Lessee; Limitations; Effect of Modification or Rescission; Retention of Rights.

440.2859 Supply contract; extension of benefits of supplier promises and of warranties to lessee; limitations; effect of modification or rescission; retention of rights.
Sec. 2A209.
(1) 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 third party provided in connection with or as part of the supply contract, extends to the lessee to the extent of the lessee's leasehold interest under a finance lease related to the supply contract, but is subject to the terms of the warranty and of the supply contract and all defenses or claims arising therefrom.
(2) The extension of the benefit of a supplier's promises and of warranties to the lessee does not do either of the following:
(a) Modify the rights and obligations of the parties to the supply contract, whether arising therefrom or otherwise.
(b) Impose any duty or liability under the supply contract on the lessee.
(3) Any modification or rescission of the supply contract by the supplier and the lessor is effective between the supplier and the lessee unless, before the modification or rescission, the supplier has received notice that the lessee has entered into a finance lease related to the supply contract. If the modification or rescission is effective between the supplier and the lessee, the lessor is deemed to have assumed, in addition to the obligations of the lessor to the lessee under the lease contract, promises of the supplier to the lessor and warranties that were so modified or rescinded as they existed and were available to the lessee before modification or rescission.
(4) In addition to the extension of the benefit of the supplier's promises and of warranties to the lessee under subsection (1), the lessee retains all rights that the lessee may have against the supplier which arise from an agreement between the lessee and the supplier or under other law.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-2 - Part 2 Formation and Construction of Lease Contract (440.2851...440.2871) › Section 440.2860 - Express Warranties; Creation.

440.2860 Express warranties; creation.
Sec. 2A210.
(1) Express warranties by the lessor are created as follows:
(a) Any affirmation of fact or promise made by the lessor to the lessee which relates to the goods and becomes part of the basis of the bargain creates an express warranty that the goods will conform to the affirmation or promise.
(b) Any description of the goods which is made part of the basis of the bargain creates an express warranty that the goods will conform to the description.
(c) Any sample or model that is made part of the basis of the bargain creates an express warranty that the whole of the goods will conform to the sample or model.
(2) It is not necessary to the creation of an express warranty that the lessor use formal words, such as "warrant" or "guarantee", or that the lessor have a specific intention to make a warranty, but an affirmation merely of the value of the goods or a statement purporting to be merely the lessor's opinion or commendation of the goods does not create a warranty.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-2 - Part 2 Formation and Construction of Lease Contract (440.2851...440.2871) › Section 440.2861 - Warranty Against Claim or Interest in Goods; Claim by Way of Infringement; Specifications Furnished by Lessee.

440.2861 Warranty against claim or interest in goods; claim by way of infringement; specifications furnished by lessee.
Sec. 2A211.
(1) 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 the lessor, other than a claim by way of infringement or the like, which will interfere with the lessee's enjoyment of its leasehold interest.
(2) Except in a finance lease, there is in a lease contract by a lessor who is a merchant regularly dealing in goods of the kind a warranty that the goods are delivered free of the rightful claim of any person by way of infringement or the like.
(3) A lessee who furnishes specifications to a lessor or a supplier shall hold the lessor and the supplier harmless against any claim by way of infringement or the like that arises out of compliance with the specifications.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-2 - Part 2 Formation and Construction of Lease Contract (440.2851...440.2871) › Section 440.2862 - Implied Warranty of Merchantability; Other Implied Warranties.

440.2862 Implied warranty of merchantability; other implied warranties.
Sec. 2A212.
(1) 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 of that kind.
(2) Goods to be merchantable must be at least all of the following:
(a) Pass without objection in the trade under the description in the lease agreement.
(b) In the case of fungible goods, are of fair average quality within the description.
(c) Are fit for the ordinary purposes for which goods of that type are used.
(d) Run, within the variation permitted by the lease agreement, of even kind, quality, and quantity within each unit and among all units involved.
(e) Are adequately contained, packaged, and labeled as the lease agreement may require.
(f) Conform to any promises or affirmations of fact made on the container or label.
(3) Other implied warranties may arise from course of dealing or usage of trade.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-2 - Part 2 Formation and Construction of Lease Contract (440.2851...440.2871) › Section 440.2863 - Implied Warranty of Fitness for a Particular Purpose.

440.2863 Implied warranty of fitness for a particular purpose.
Sec. 2A213.
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 and that the lessee is relying on the lessor's skill or judgment to select or furnish suitable goods, there is in the lease contract an implied warranty that the goods will be fit for that purpose.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-2 - Part 2 Formation and Construction of Lease Contract (440.2851...440.2871) › Section 440.2864 - Limiting, Negating, Excluding, or Modifying Warranties; Construction of Words or Conduct.

440.2864 Limiting, negating, excluding, or modifying warranties; construction of words or conduct.
Sec. 2A214.
(1) 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 reasonable as consistent with each other, but, subject to the provisions of section 2A202 on parol or extrinsic evidence, negation or limitation is inoperative to the extent that the construction is unreasonable.
(2) Subject to subsection (3), to exclude or modify the implied warranty of merchantability or any part of it, the language must mention "merchantability", be by a writing, and be conspicuous. Subject to subsection (3), to exclude or modify any implied warranty of fitness, the exclusion must be by a writing and be conspicuous. Language to exclude all implied warranties of fitness is sufficient if it is in writing, is conspicuous, and states, for example, "There is no warranty that the goods will be fit for a particular purpose".
(3) Notwithstanding subsection (2), but subject to subsection (4), all of the following apply:
(a) Unless the circumstances indicate otherwise, all implied warranties are excluded by expressions like "as is", or "with all faults", or by other language that in common understanding calls the lessee's attention to the exclusion of warranties and makes plain that there is no implied warranty, if in writing and conspicuous.
(b) If the lessee before entering into the lease contract has examined the goods or the sample or model as fully as desired or has refused to examine the goods, there is no implied warranty with regard to defects that an examination ought in the circumstances to have revealed.
(c) An implied warranty may also be excluded or modified by course of dealing, course of performance, or usage of trade.
(4) To exclude or modify a warranty against interference or against infringement (section 2A211) or any part of it, the language must be specific, be by a writing, and be conspicuous, unless the circumstances, including course of performance, course of dealing, or usage of trade, give the lessee reason to know that the goods are being leased subject to a claim or interest of any person.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-2 - Part 2 Formation and Construction of Lease Contract (440.2851...440.2871) › Section 440.2865 - Inconsistent Warranties; Intent; Rules of Construction.

440.2865 Inconsistent warranties; intent; rules of construction.
Sec. 2A215.
Warranties, whether express or implied, must be construed as consistent with each other and as cumulative, but if that construction is unreasonable, the intention of the parties determines which warranty is dominant. In ascertaining that intention, the following rules apply:
(a) Exact or technical specifications displace an inconsistent sample or model or general language of description.
(b) A sample from an existing bulk displaces inconsistent general language of description.
(c) Express warranties displace inconsistent implied warranties other than an implied warranty of fitness for a particular purpose.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-2 - Part 2 Formation and Construction of Lease Contract (440.2851...440.2871) › Section 440.2866 - Warranty; Extension to Persons in Family, Household, or to Guest; Exclusion, Modification, or Limitation.

440.2866 Warranty; extension to persons in family, household, or to guest; exclusion, modification, or limitation.
Sec. 2A216.
A warranty to or for the benefit of a lessee under this article, whether express or implied, extends to any natural person who is in the family or household of the lessee or who is a guest in the lessee's home if it is reasonable to expect that such person may use, consume, or be affected by the goods and who is injured in person by breach of the warranty. This section does not displace principles of law and equity that extend a warranty to or for the benefit of a lessee to other persons. The operation of this section may not be excluded, modified, or limited, but an exclusion, modification, or limitation of the warranty, including any with respect to rights and remedies, effective against the lessee is also effective against any beneficiary designated under this section.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-2 - Part 2 Formation and Construction of Lease Contract (440.2851...440.2871) › Section 440.2867 - Lease Contract; Identification of Goods; Absence of Explicit Agreement.

440.2867 Lease contract; identification of goods; absence of explicit agreement.
Sec. 2A217.
Identification of goods as goods to which a lease contract refers may be made at any time and in any manner explicitly agreed to be the parties. In the absence of explicit agreement, the following determines when identification occurs:
(a) When the lease contract is made if the lease contract is for a lease of goods that are existing and identified.
(b) When the goods are shipped, marked, or otherwise designated by the lessor as goods to which the lease contract refers, if the lease contract is for a lease of goods that are not existing and identified.
(c) When the young are conceived, if the lease contract is for a lease of unborn young of animals.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-2 - Part 2 Formation and Construction of Lease Contract (440.2851...440.2871) › Section 440.2868 - Lease Contract; Insurable Interest in Goods.

440.2868 Lease contract; insurable interest in goods.
Sec. 2A218.
(1) A lessee obtains an insurable interest when existing goods are identified to the lease contract even though the goods identified are nonconforming and the lessee has an option to reject them.
(2) If a lessee has an insurable interest only by reason of the lessor's identification of the goods, the lessor, until default or insolvency or notification to the lessee that identification is final, may substitute other goods for those identified.
(3) Notwithstanding a lessee's insurable interest under subsections (1) and (2), the lessor retains an insurable interest until an option to buy has been exercised by the lessee and risk of loss has passed to the lessee.
(4) Nothing in this section impairs any insurable interest recognized under any other statute or rule of law.
(5) The parties by agreement may determine that 1 or more parties have an obligation to obtain and pay for insurance covering the goods and by agreement may determine the beneficiary of the proceeds of the insurance.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-2 - Part 2 Formation and Construction of Lease Contract (440.2851...440.2871) › Section 440.2869 - Risk of Loss; Passage to Lessee.

440.2869 Risk of loss; passage to lessee.
Sec. 2A219.
(1) 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 passes to the lessee.
(2) Subject to the provisions of this article on the effect of default on risk of loss (section 2A220), if risk of loss is to pass to the lessee and the time of passage is not stated, the following rules apply:
(a) If the lease contract requires or authorizes the goods to be shipped by carrier and it does not require delivery at a particular destination, the risk of loss passes to the lessee when the goods are duly delivered to the carrier, but if it does require delivery at a particular destination and the goods are there duly tendered while in the possession of the carrier, the risk of loss passes to the lessee when the goods are there duly so tendered as to enable the lessee to take delivery.
(b) If the goods are held by a bailee to be delivered without being moved, the risk of loss passes to the lessee on acknowledgment by the bailee of the lessee's right to possession of the goods.
(c) In any case not within subdivision (a) or (b), the risk of loss passes to the lessee on the lessee's receipt of the goods if the lessor, or, in the case of a finance lease, the supplier, is a merchant; otherwise, the risk passes to the lessee on tender of delivery.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-2 - Part 2 Formation and Construction of Lease Contract (440.2851...440.2871) › Section 440.2870 - Risk of Loss; Repudiation; Default.

440.2870 Risk of loss; repudiation; default.
Sec. 2A220.
(1) Where risk of loss is to pass to the lessee and the time of passage is not stated, then the following rules apply:
(a) If a tender or delivery of goods so fails to conform to the lease contract as to give a right of rejection, the risk of their loss remains with the lessor, or, in the case of a finance lease, the supplier, until cure or acceptance.
(b) If the lessee rightfully revokes acceptance, he or she, to the extent of any deficiency in his or her effective insurance coverage, may treat the risk of loss as having remained with the lessor from the beginning.
(2) Whether or not risk of loss is to pass to the lessee, if the lessee as to conforming goods already identified to a lease contract repudiates or is otherwise in default under the lease contract, the lessor, or, in the case of a finance lease, the supplier, to the extent of any deficiency in his or her effective insurance coverage, may treat the risk of loss as resting on the lessee for a commercially reasonable time.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-2 - Part 2 Formation and Construction of Lease Contract (440.2851...440.2871) › Section 440.2871 - Casualty to Identified Goods Before Delivery or Risk of Loss Passes.

440.2871 Casualty to identified goods before delivery or risk of loss passes.
Sec. 2A221.
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 supplier before delivery, or the goods suffer casualty before risk of loss passes to the lessee pursuant to the lease agreement or section 2A219, then the following rules apply:
(a) If the loss is total, the lease contract is avoided.
(b) If the loss is partial or the goods have so deteriorated as to no longer conform to the lease contract, the lessee may nevertheless demand inspection and at his or her option either treat the lease contract as avoided or, except in a finance lease that is not a consumer lease, accept the goods with due allowance from the rent payable for the balance of the lease term for the deterioration or the deficiency in quantity but without further right against the lessor.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-3 - Part 3 Effect of Lease Contract (440.2901...440.2911) › Section 440.2901 - Lease Contract; Enforcement.

440.2901 Lease contract; enforcement.
Sec. 2A301.
Except as otherwise provided in this article, a lease contract is effective and enforceable according to its terms between the parties, against purchasers of the goods and against creditors of the parties.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-3 - Part 3 Effect of Lease Contract (440.2901...440.2911) › Section 440.2902 - Applicability of Article; Title or Possession.

440.2902 Applicability of article; title or possession.
Sec. 2A302.
Except as otherwise provided in this article, each provision of this article applies whether the lessor or a third party has title to the goods, and whether the lessor, the lessee, or a third party has possession of the goods, notwithstanding any statute or rule of law that possession or the absence of possession is fraudulent.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-3 - Part 3 Effect of Lease Contract (440.2901...440.2911) › Section 440.2904 - Transfer From Lessor to Subsequent Lessee; Power; Obtaining Rights in Ordinary Course of Business; Entrustment; Certificate of Title.

440.2904 Transfer from lessor to subsequent lessee; power; obtaining rights in ordinary course of business; entrustment; certificate of title.
Sec. 2A304.
(1) Subject to section 2A303, a subsequent lessee from a lessor of goods under an existing lease contract obtains, to the extent of the leasehold interest transferred, the leasehold interest in the goods that the lessor had or had power to transfer, and except as provided in subsection (2) and section 2A527(4), takes subject to the existing lease contract. A lessor with voidable title has power to transfer a good leasehold interest to a good faith subsequent lessee for value, but only to the extent set forth in the preceding sentence. If goods have been delivered under a transaction of purchase, the lessor has that power even though any of the following apply:
(a) The lessor's transferor was deceived as to the identity of the lessor.
(b) The delivery was in exchange for a check which is later dishonored.
(c) It was agreed that the transaction was to be a "cash sale".
(d) The delivery was procured through fraud punishable as larcenous under the criminal law.
(2) A subsequent lessee in the ordinary course of business from a lessor who is a merchant dealing in goods of that kind to whom the goods were entrusted by the existing lessee of that lessor before the interest of the subsequent lessee became enforceable against that lessor obtains, to the extent of the leasehold interest transferred, all of that lessor's and the existing lessee's rights to the goods, and takes free of the existing lease contract.
(3) A subsequent lessee from the lessor of goods that are subject to an existing lease contract and are covered by a certificate of title issued under a statute of this state or of another jurisdiction takes no greater rights than those provided both by this section and by the certificate of title statute.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-3 - Part 3 Effect of Lease Contract (440.2901...440.2911) › Section 440.2905 - Transfer From Lessee to Buyer or Sublessee; Power; Rights; Buyer in Ordinary Course of Business; Entrustment; Certificate of Title.

440.2905 Transfer from lessee to buyer or sublessee; power; rights; buyer in ordinary course of business; entrustment; certificate of title.
Sec. 2A305.
(1) Subject to section 2A303, a buyer or sublessee from the lessee of goods under an existing lease contract obtains, to the extent of the interest transferred, the leasehold interest in the goods that the lessee had or had power to transfer, and except as provided in subsection (2) and section 2A511(4), takes subject to the existing lease contract. A lessee with a voidable leasehold interest has power to transfer a good leasehold interest to a good faith buyer for value or a good faith sublessee for value, but only to the extent set forth in the preceding sentence. When goods have been delivered under a transaction of lease, the lessee has that power even though any of the following apply:
(a) The lessor was deceived as to the identity of the lessee.
(b) The delivery was in exchange for a check which is later dishonored.
(c) The delivery was procured through fraud punishable as larcenous under the criminal law.
(2) A buyer in the ordinary course of business or a sublessee in the ordinary course of business from a lessee who is a merchant dealing in goods of that kind to whom the goods were entrusted by the lessor obtains, to the extent of the interest transferred, all of the lessor's and lessee's rights to the goods, and takes free of the existing lease contract.
(3) A buyer or sublessee from the lessee of goods that are subject to an existing lease contract and are covered by a certificate of title issued under a statute of this state or of another jurisdiction takes no greater rights than those provided both by this section and by the certificate of title statute.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-3 - Part 3 Effect of Lease Contract (440.2901...440.2911) › Section 440.2906 - Materials or Services Provided With Respect to Goods Subject to Lease Contract; Lien; Priority; Exception.

440.2906 Materials or services provided with respect to goods subject to lease contract; lien; priority; exception.
Sec. 2A306.
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 goods in the possession of that person given by statute or rule of law for those materials or services takes priority over any interest of the lessor or lessee under the lease contract or this article unless the lien is created by statute and the statute provides otherwise or unless the lien is created by rule of law and the rule of law provides otherwise.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-3 - Part 3 Effect of Lease Contract (440.2901...440.2911) › Section 440.2907 - Creditor of Lessee; Rights; Taking Leasehold Interest Subject to Security Interest.

440.2907 Creditor of lessee; rights; taking leasehold interest subject to security interest.
Sec. 2A307.
(1) Except as otherwise provided in section 2A306, a creditor of a lessee takes subject to the lease contract.
(2) Except as otherwise provided in subsection (3) and in sections 2A306 and 2A308, a creditor of a lessor takes subject to the lease contract unless the creditor holds a lien that attached to the goods before the lease contract became enforceable.
(3) Except as otherwise provided in sections 9317, 9321, and 9323, a lessee takes a leasehold interest subject to a security interest held by a creditor of the lessor.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992 ;-- Am. 2000, Act 348, Eff. July 1, 2001
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-3 - Part 3 Effect of Lease Contract (440.2901...440.2911) › Section 440.2908 - Creditor of Lessor or Seller; Lease or Sale Contract Treated as Void; Fraudulent Retention or Possession of Goods; Security for Preexisting Claim.

440.2908 Creditor of lessor or seller; lease or sale contract treated as void; fraudulent retention or possession of goods; security for preexisting claim.
Sec. 2A308.
(1) 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 possession by the lessor is fraudulent under any statute or rule of law, but retention of possession in good faith and current course of trade by the lessor for a commercially reasonable time after the lease contract becomes enforceable is not fraudulent.
(2) Nothing in this article impairs the rights of creditors of a lessor if the lease contract (i) becomes enforceable, not in current course of trade but in satisfaction of or as security for a preexisting claim for money, security, or the like, and (ii) is made under circumstances which under any statute or rule of law apart from this article would constitute the transaction a fraudulent transfer or voidable preference.
(3) A creditor of a seller may treat a sale or an identification of goods to a contract for sale as void if as against the creditor retention of possession by the seller is fraudulent under any statute or rule of law, but retention of possession of the goods pursuant to a lease contract entered into by the seller as lessee and the buyer as lessor in connection with the sale or identification of the goods is not fraudulent if the buyer bought for value and in good faith.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-3 - Part 3 Effect of Lease Contract (440.2901...440.2911) › Section 440.2910 - Goods as Accessions; Priority of Interests; Right to Remove Goods; Reimbursement.

440.2910 Goods as accessions; priority of interests; right to remove goods; reimbursement.
Sec. 2A310.
(1) Goods are accessions when they are installed in or affixed to other goods.
(2) The interest of a lessor or a lessee under a lease contract entered into before the goods became accessions is superior to all interests in the whole except as stated in subsection (4).
(3) The interest of a lessor or a lessee under a lease contract entered into at the time or after the goods became accessions is superior to all subsequently acquired interests in the whole except as stated in subsection (4) but is subordinate to interests in the whole existing at the time the lease contract was made unless the holders of such interests in the whole have in writing consented to the lease or disclaimed an interest in the goods as part of the whole.
(4) The interest of a lessor or a lessee under a lease contract described in subsection (2) or (3) is subordinate to the interest of either of the following:
(a) A buyer in the ordinary course of business or a lessee in the ordinary course of business of any interest in the whole acquired after the goods became accessions.
(b) A creditor with a security interest in the whole perfected before the lease contract was made to the extent that the creditor makes subsequent advances without knowledge of the lease contract.
(5) When under subsections (2) or (3) and (4) a lessor or a lessee of accessions holds an interest that is superior to all interests in the whole, the lessor or the lessee may (i) on default, expiration, termination, or cancellation of the lease contract by the other party but subject to the provisions of the lease contract and this article, or (ii) if necessary to enforce his or her other rights and remedies under this article, remove the goods from the whole, free and clear of all interests in the whole, but he or she must reimburse any holder of an interest in the whole who is not the lessee and who has not otherwise agreed for the cost of repair of any physical injury but not for any diminution in value of the whole caused by the absence of the goods removed or by any necessity for replacing them. A person entitled to reimbursement may refuse permission to remove until the party seeking removal gives adequate security for the performance of this obligation.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-3 - Part 3 Effect of Lease Contract (440.2901...440.2911) › Section 440.2911 - Subordination by Agreement.

440.2911 Subordination by agreement.
Sec. 2A311.
Nothing in this article prevents subordination by agreement by any person entitled to priority.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-4 - Part 4 Performance of Lease Contract: Repudiated, Substituted, and Excused (440.2931...440.2937) › Section 440.2931 - Lease Contract; Demanding Adequate Assurance of Due Performance; Repudiation; Determination of Adequacy; Acceptance of Nonconforming Delivery or Payment.

440.2931 Lease contract; demanding adequate assurance of due performance; repudiation; determination of adequacy; acceptance of nonconforming delivery or payment.
Sec. 2A401.
(1) A lease contract imposes an obligation on each party that the other's expectation of receiving due performance will not be impaired.
(2) If reasonable grounds for insecurity arise with respect to the performance of either party, the insecure party may demand in writing adequate assurance of due performance. Until the insecure party receives that assurance, if commercially reasonable the insecure party may suspend any performance for which he or she has not already received the agreed return.
(3) A repudiation of the lease contract occurs if assurance of due performance adequate under the circumstances of the particular case is not provided to the insecure party within a reasonable time, not to exceed 30 days after receipt of a demand by the other party.
(4) Between merchants, the reasonableness of grounds for insecurity and the adequacy of any assurance offered must be determined according to commercial standards.
(5) Acceptance of any nonconforming delivery or payment does not prejudice the aggrieved party's right to demand adequate assurance of future performance.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-4 - Part 4 Performance of Lease Contract: Repudiated, Substituted, and Excused (440.2931...440.2937) › Section 440.2932 - Repudiation of Lease Contract.

440.2932 Repudiation of lease contract.
Sec. 2A402.
If either party repudiates a lease contract with respect to a performance not yet due under the lease contract, the loss of which performance will substantially impair the value of the lease contract to the other, the aggrieved party may do any of the following:
(a) For a commercially reasonable time, await retraction of repudiation and performance by the repudiating party.
(b) Make demand pursuant to section 2A401 and await assurance of future performance adequate under the circumstances of the particular case.
(c) Resort to any right or remedy upon default under the lease contract or this article, even though the aggrieved party has notified the repudiating party that the aggrieved party would await the repudiating party's performance and assurance and has urged retraction. In addition, whether or not the aggrieved party is pursuing 1 of the foregoing remedies, the aggrieved party may suspend performance or, if the aggrieved party is the lessor, proceed in accordance with the provisions of this article on the lessor's right to identify goods to the lease contract notwithstanding default or to salvage unfinished goods (section 2A524).
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-4 - Part 4 Performance of Lease Contract: Repudiated, Substituted, and Excused (440.2931...440.2937) › Section 440.2933 - Retraction of Repudiation.

440.2933 Retraction of repudiation.
Sec. 2A403.
(1) Until the repudiating party's next performance is due, the repudiating party can retract the repudiation unless, since the repudiation, the aggrieved party has canceled the lease contract or materially changed the aggrieved party's position or otherwise indicated that the aggrieved party considers the repudiation final.
(2) Retraction may be by any method that clearly indicates to the aggrieved party that the repudiating party intends to perform under the lease contract and includes any assurance demanded under section 2A401.
(3) Retraction reinstates a repudiating party's rights under a lease contract with due excuse and allowance to the aggrieved party for any delay occasioned by the repudiation.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-4 - Part 4 Performance of Lease Contract: Repudiated, Substituted, and Excused (440.2931...440.2937) › Section 440.2934 - Substituted Performance; Tender and Acceptance; Failure of Payment Due to Government Regulation.

440.2934 Substituted performance; tender and acceptance; failure of payment due to government regulation.
Sec. 2A404.
(1) 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 becomes unavailable or the agreed manner of delivery otherwise becomes commercially impracticable, but a commercially reasonable substitute is available, the substitute performance must be tendered and accepted.
(2) If the agreed means or manner of payment fails because of domestic or foreign governmental regulation, then the following apply:
(a) The lessor may withhold or stop delivery or cause the supplier to withhold or stop delivery unless the lessee provides a means or manner of payment that is commercially a substantial equivalent.
(b) If delivery has already been taken, payment by the means or in the manner provided by the regulation discharges the lessee's obligation unless the regulation is discriminatory, oppressive, or predatory.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-4 - Part 4 Performance of Lease Contract: Repudiated, Substituted, and Excused (440.2931...440.2937) › Section 440.2935 - Substituted Performance; Delay or Nondelivery; Allocating Production and Deliveries; Notification.

440.2935 Substituted performance; delay or nondelivery; allocating production and deliveries; notification.
Sec. 2A405.
Subject to section 2A404 on substituted performance, the following rules apply:
(a) Delay in delivery or nondelivery in whole or in part by a lessor or a supplier who complies with subdivisions (b) and (c) is not a default under the lease contract if performance as agreed has been made impracticable by the occurrence of a contingency the nonoccurrence of which was a basic assumption on which the lease contract was made or by compliance in good faith with any applicable foreign or domestic governmental regulation or order, whether or not the regulation or order later proves to be invalid.
(b) If the causes mentioned in subdivision (a) affect only part of the lessor's or the supplier's capacity to perform, he or she shall allocate production and deliveries among his or her customers but at his or her option may include regular customers not then under contract for sale or lease as well as his or her own requirements for further manufacture. He or she may so allocate in any manner that is fair and reasonable.
(c) The lessor seasonably shall notify the lessee and in the case of a finance lease the supplier seasonably shall notify the lessor and the lessee, if known, that there will be delay or nondelivery and, if allocation is required under subdivision (b), of the estimated quota thus made available for the lessee.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-4 - Part 4 Performance of Lease Contract: Repudiated, Substituted, and Excused (440.2931...440.2937) › Section 440.2936 - Notification by Lessor of Delay or Allocation; Rights of Lessee; Lapse of Lease Contract.

440.2936 Notification by lessor of delay or allocation; rights of lessee; lapse of lease contract.
Sec. 2A406.
(1) If the lessee receives notification of a material or indefinite delay or an allocation justified under section 2A405, the lessee may by written notification to the lessor as to any goods involved, and with respect to all of the goods if under an installment lease contract the value of the whole lease contract is substantially impaired (section 2A510) may do either of the following:
(a) Terminate the lease contract (section 2A505(2)).
(b) Except in a finance lease that is not a consumer lease, modify the lease contract by accepting the available quota in substitution, with due allowance from the rent payable for the balance of the lease term for the deficiency but without further right against the lessor.
(2) If, after receipt of a notification from the lessor under section 2A405, the lessee fails so to modify the lease agreement within a reasonable time not exceeding 30 days, the lease contract lapses with respect to any deliveries affected.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-4 - Part 4 Performance of Lease Contract: Repudiated, Substituted, and Excused (440.2931...440.2937) › Section 440.2937 - Finance Lease Other Than Consumer Lease; Effect of Lessee's Promises; Acceptance of Goods by Lessee; Enforcement; Validity.

440.2937 Finance lease other than consumer lease; effect of lessee's promises; acceptance of goods by lessee; enforcement; validity.
Sec. 2A407.
(1) 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 lessee's acceptance of the goods.
(2) A promise that has become irrevocable and independent under subsection (1) is (i) effective and enforceable between the parties, and by or against third parties including assignees of the parties, and (ii) not subject to cancellation, termination, modification, repudiation, excuse, or substitution without the consent of the party to whom the promise runs.
(3) This section does not affect the validity under any other law of a covenant in any lease contract making the lessee's promises irrevocable and independent upon the lessee's acceptance of the goods.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-5 - Part 5 Default (440.2951...440.2982) › Section 440.2951 - Default; Rights and Remedies; Self-Help; Enforcement Covering Real Property and Goods.

440.2951 Default; rights and remedies; self-help; enforcement covering real property and goods.
Sec. 2A501.
(1) Whether the lessor or the lessee is in default under a lease contract is determined by the lease agreement and this article.
(2) If the lessor or the lessee is in default under the lease contract, the party seeking enforcement has rights and remedies as provided in this article and, except as limited by this article, as provided in the lease agreement.
(3) If the lessor or the lessee is in default under the lease contract, the party seeking enforcement may reduce the party's claim to judgment, or otherwise enforce the lease contract by self-help or any available judicial procedure or nonjudicial procedure, including administrative proceeding, arbitration, or the like, in accordance with this article.
(4) Except as otherwise provided in section 1305(1) or this article or the lease agreement, the rights and remedies referred to in subsections (2) and (3) are cumulative.
(5) If the lease agreement covers both real property and goods, the party seeking enforcement may proceed under this part as to the goods, or under other applicable law as to both the real property and the goods in accordance with that party's rights and remedies in respect of the real property, in which case this part does not apply.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992 ;-- Am. 2012, Act 86, Eff. July 1, 2013
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-5 - Part 5 Default (440.2951...440.2982) › Section 440.2952 - Notice of Default or Enforcement.

440.2952 Notice of default or enforcement.
Sec. 2A502.
Except as otherwise provided in this article or the lease agreement, the lessor or lessee in default under the lease contract is not entitled to notice of default or notice of enforcement from the other party to the lease agreement.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 2A - Leases (440.2801...440.2982) › 174-1962-2A-5 - Part 5 Default (440.2951...440.2982) › Section 440.2953 - Default; Rights and Remedies Provided in Lease Agreement; Optional Remedies; Liquidation, Limitation, Alteration or Exclusion of Consequential Damages; Collateral or Ancillary Obligations and Promises.

440.2953 Default; rights and remedies provided in lease agreement; optional remedies; liquidation, limitation, alteration or exclusion of consequential damages; collateral or ancillary obligations and promises.
Sec. 2A503.
(1) Except as otherwise provided in this article, the lease agreement may include rights and remedies for default in addition to or in substitution for those provided in this article and may limit or alter the measure of damages recoverable under this article.
(2) Resort to a remedy provided under this article or in the lease agreement is optional unless the remedy is expressly agreed to be exclusive. If circumstances cause an exclusive or limited remedy to fail of its essential purpose, or provision for an exclusive remedy is unconscionable, remedy may be had as provided in this article.
(3) Consequential damages may be liquidated under section 2A504, or may otherwise be limited, altered, or excluded unless the limitation, alteration, or exclusion is unconscionable. Limitation, alteration, or exclusion of consequential damages for injury to the person in the case of consumer goods is prima facie unconscionable but limitation, alteration, or exclusion of damages where the loss is commercial is not prima facie unconscionable.
(4) Rights and remedies on default by the lessor or the lessee with respect to any obligation or promise collateral or ancillary to the lease contract are not impaired by this article.
History:
Add. 1992, Act 101, Eff. Sept. 30, 1992