Also known as: UCC Article 2A · Article 2A Leases · UCC 2A · leases
Written by attorneys · grounded in primary & secondary sources — see below
A uniform act governing leases of personal property. The article extends sales rules from Article 2 to lease transactions and imposes implied warranties on leased goods.
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Alice and Bob hold Blackacre as joint tenants. Alice leases her interest to a third party for five years. Alice dies two years later. The surviving joint tenant takes the property free of the lease because the lease did not sever the joint tenancy.
A junior mortgagee appoints a receiver who collects fifty thousand dollars in net rents after taxes and repairs. A senior mortgagee later appoints its own receiver. The junior receiver retains the collected funds for the junior mortgagee.
A landlord leases a theater knowing the stage has a hidden structural defect. Patrons enter for a performance and suffer injuries from the defect. The landlord is liable because it failed to remedy the known unreasonable risk before public admission.
A commercial lease contains a covenant restricting the tenant's use of the premises to retail sales only. The covenant runs with the land and binds subsequent tenants and assignees as a servitude.
A junior mortgagee obtains a receiver who collects fifty thousand dollars in net rents. When a senior receiver later takes possession, the junior receiver keeps the funds already collected for the junior mortgagee.
A landlord leases office space but retains control of the building lobby and elevators. A dangerous condition in the lobby injures a tenant's employee. The landlord is liable because it could have discovered and corrected the condition by reasonable care.
Yes. Article 2A extends warranty rules from Article 2 to lease transactions and imposes implied warranties of merchantability and fitness for a particular purpose on leased personal property.
Supporting sources
Article 2A applies to leases of goods in which the lessor retains title. Courts previously extended Article 2 warranties to such leases by analogy before the article's promulgation.
Supporting sources
Article 2A governs only personal property leases. Real property lease issues such as common-area liability or receivership priority are governed by separate property doctrines and restatements.
Supporting sources
…Agricultural Ins. Co. v. Constantine , 144 Ohio St. 275, 58 N. E. 2d 658 (Sup. Ct. 1944); as to exculpatory clauses in leases releasing a landlord of apartments in a multiple dwelling house from all liability for negligence where inequality of bargaining exists, see Annotation , 175 A. L. R. 8 (1948). And the…