Chapter 72A - Leases
- 72A.1010 Short title.
This chapter may be cited as the Uniform Commercial Code–Leases. [1989 c.676 §1; 1995 c.79 §21]
- 72A.1020 Scope.
This chapter applies to any transaction, regardless of form, that creates a lease. [1989 c.676 §2]
- 72A.1030 Definitions and index of definitions.
(1) As used in this chapter, unless the context otherwise requires: (a) “Buyer in ordinary course of business” means a person who in good faith...
- 72A.1040 Leases subject to other statutes.
(1) A lease, although subject to this chapter, is also subject to any applicable: (a) Certificate of title statute of this state; (b) Certificate of...
- 72A.1050 Territorial application of act to goods covered by certificate of title.
Subject to the provisions of ORS 72A.3040 and 72A.3050, with respect to goods covered by a certificate of title issued under a statute of this...
- 72A.1060 Limitation on power of parties to consumer lease to choose applicable law and judicial forum.
(1) If the law chosen by the parties to a consumer lease is that of a jurisdiction other than a jurisdiction in which the lessee...
- 72A.1070 Waiver or renunciation of claim or right after default.
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...
- 72A.1080 Unconscionability.
(1) If the court as a matter of law finds a lease contract or any clause of a lease contract to have been unconscionable at...
- 72A.1090 Option to accelerate at will.
A term providing that one party or the party’s successor in interest may accelerate payment or performance or require collateral or additional collateral “at will”...
- 72A.1095 Subordination by agreement.
Nothing in this chapter prevents subordination by agreement by any person entitled to priority. [1993 c.646 §22] FORMATION AND CONSTRUCTION OF LEASE CONTRACT
- 72A.2010 Statute of frauds.
(1) A lease contract is not enforceable by way of action or defense unless: (a) The total payments to be made under the lease contract,...
- 72A.2020 Final written expression; parol or extrinsic evidence.
Terms with respect to which the confirmatory memoranda of the parties agree or which are otherwise set forth in a writing intended by the parties...
- 72A.2030 Seals inoperative.
The affixing of a seal to a writing evidencing a lease contract or an offer to enter into a lease contract does not render the...
- 72A.2040 Formation in general.
(1) A lease contract may be made in any manner sufficient to show agreement, including conduct by both parties which recognizes the existence of a...
- 72A.2050 Firm offers.
An offer by a merchant to lease goods to or from another person in a signed writing that by its terms gives assurance it will...
- 72A.2060 Offer and acceptance in formation of lease contract.
(1) Unless otherwise unambiguously indicated by the language or circumstances, an offer to make a lease contract must be construed as inviting acceptance in any...
- 72A.2070 Course of performance or practical construction.
(1) If a lease contract involves repeated occasions for performance by either party with knowledge of the nature of the performance and opportunity for objection...
- 72A.2080 Modification, rescission and waiver.
(1) An agreement modifying a lease contract needs no consideration to be binding. (2) A signed lease agreement that excludes modification or rescission except by...
- 72A.2090 Lessee under finance lease as beneficiary of supply contract.
(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...
- 72A.2100 Express warranties.
(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...
- 72A.2110 Warranties against interference and against infringement; lessee’s obligation against infringement.
(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...
- 72A.2120 Implied warranty of merchantability.
(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...
- 72A.2130 Implied warranty of fitness for particular purpose.
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...
- 72A.2140 Exclusion or modification of warranties.
(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...
- 72A.2150 Cumulation and conflict of warranties express or implied.
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...
- 72A.2160 Third-party beneficiaries of express and implied warranties.
A warranty to or for the benefit of a lessee under this chapter, whether express or implied, extends to any natural person who is in...
- 72A.2170 Identification.
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...
- 72A.2180 Insurance and proceeds.
(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...
- 72A.2190 Risk of loss.
(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...
- 72A.2200 Effect of default on risk of loss.
(1) Where risk of loss is to pass to the lessee and the time of passage is not stated: (a) If a tender or delivery...
- 72A.2210 Casualty to identified goods.
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...
- 72A.3010 Enforceability of lease contract.
Except as otherwise provided in this chapter, a lease contract is effective and enforceable according to its terms between the parties, against purchasers of the...
- 72A.3020 Title to and possession of goods.
Except as otherwise provided in this chapter, each provision of this chapter applies whether the lessor or a third party has title to the goods,...
- 72A.3030 Alienability of party’s interest under lease contract or of lessor’s residual interest in goods; delegation of performance; transfer of rights.
(1) As used in this section, “creation of a security interest” includes the sale of a lease contract that is subject to ORS 79.0109 (1)(c)....
- 72A.3040 Subsequent lease of goods by lessor.
(1) Subject to ORS 72A.3030, a subsequent lessee from a lessor of goods under an existing lease contract obtains, to the extent of the leasehold...
- 72A.3050 Sale or sublease of goods by lessee.
(1) Subject to the provisions of ORS 72A.3030, a buyer or sublessee from the lessee of goods under an existing lease contract obtains, to the...
- 72A.3060 Priority of certain liens arising by operation of law.
If a person in the ordinary course of the person’s business furnishes services or materials with respect to goods subject to a lease contract, a...
- 72A.3070 Priority of liens arising by attachment or levy on goods; priority of certain security interests in goods.
(1) Except as otherwise provided in ORS 72A.3060, a creditor of a lessee takes subject to the lease contract. (2) Except as otherwise provided in...
- 72A.3080 Special rights of creditors.
(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...
- 72A.3090 Lessor’s and lessee’s rights when goods become fixtures.
(1) As used in this section: (a) Goods are “fixtures” when they become so related to particular real estate that an interest in them arises...
- 72A.3095 Fixture filing recorded and indexed as mortgage.
(1) A financing statement filed as a fixture filing under ORS 72A.3090 shall be recorded and indexed as a mortgage on the real estate. (2)...
- 72A.3100 Lessor’s and lessee’s rights when goods become accessions.
(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...
- 72A.4010 Insecurity; adequate assurance of performance.
(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...
- 72A.4020 Anticipatory repudiation.
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...
- 72A.4030 Retraction of anticipatory repudiation.
(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...
- 72A.4040 Substituted performance.
(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...
- 72A.4050 Excused performance.
Subject to ORS 72A.4040 on substituted performance, the following rules apply: (1) Delay in delivery or nondelivery in whole or in part by a lessor...
- 72A.4060 Procedure on excused performance.
(1) If the lessee receives notification of a material or indefinite delay or an allocation justified under ORS 72A.4050, the lessee may by written notification...
- 72A.4070 Irrevocable promises; finance leases.
(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...
- 72A.5010 Default; procedure.
(1) Whether the lessor or the lessee is in default under a lease contract is determined by the lease agreement and this chapter. (2) If...
- 72A.5020 Notice after default.
Except as otherwise provided in this chapter or the lease agreement, the lessor or lessee in default under the lease contract is not entitled to...
- 72A.5030 Modification or impairment of rights and remedies.
(1) Except as otherwise provided in this chapter, the lease agreement may include rights and remedies for default in addition to or in substitution for...
- 72A.5040 Liquidation of damages.
(1) Damages payable by either party for default, or any other act or omission, including indemnity for loss or diminution of anticipated tax benefits or...
- 72A.5050 Cancellation and termination and effect of cancellation, termination, rescission or fraud on rights and remedies.
(1) On cancellation of the lease contract, all obligations that are still executory on both sides are discharged, but any right based on prior default...
- 72A.5060 Statute of limitations.
(1) An action for default under a lease contract, including breach of warranty or indemnity, must be commenced within four years after the cause of...
- 72A.5070 Proof of market rent; time and place.
(1) Damages based on market rent under ORS 72A.5190 or 72A.5280 are determined according to the rent for the use of the goods concerned for...
- 72A.5080 Lessee’s remedies.
(1) If a lessor fails to deliver the goods in conformity to the lease contract as provided in ORS 72A.5090 or repudiates the lease contract...
- 72A.5090 Lessee’s rights on improper delivery; rightful rejection.
(1) Subject to the provisions of ORS 72A.5100 on default in installment lease contracts, if the goods or the tender or delivery fail in any...
- 72A.5100 Installment lease contracts; rejection and default.
(1) Under an installment lease contract a lessee may reject any delivery that is nonconforming if the nonconformity substantially impairs the value of that delivery...
- 72A.5110 Merchant lessee’s duties as to rightfully rejected goods.
(1) Subject to any security interest of a lessee under ORS 72A.5080, if a lessor or a supplier has no agent or place of business...
- 72A.5120 Lessee’s duties as to rightfully rejected goods.
(1) Except as otherwise provided in ORS 72A.5110 with respect to goods that threaten to decline in value speedily and subject to any security interest...
- 72A.5130 Cure by lessor of improper tender or delivery; replacement.
(1) If any tender or delivery by the lessor or the supplier is rejected because it is nonconforming and the time for performance has not...
- 72A.5140 Waiver of lessee’s objections.
(1) 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...
- 72A.5150 Acceptance of goods.
(1) Acceptance of goods occurs after the lessee has had a reasonable opportunity to inspect the goods and: (a) The lessee signifies or acts with...
- 72A.5160 Effect of acceptance of goods; notice of default; burden of establishing default after acceptance; notice of claim or litigation to person answerable.
(1) A lessee must pay rent for any goods accepted in accordance with the lease contract, with due allowance for goods rightfully rejected or not...
- 72A.5170 Revocation of acceptance of goods.
(1) A lessee may revoke acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to the lessee if the lessee has...
- 72A.5180 Cover; substitute goods.
(1) After a default by a lessor under the lease contract of the type described in ORS 72A.5080, or, if agreed, after other default by...
- 72A.5190 Lessee’s damages for nondelivery, repudiation, default and breach of warranty in regard to accepted goods.
(1) Except as otherwise provided in ORS 72A.5030 with respect to damages liquidated in the lease agreement or otherwise determined pursuant to agreement of the...
- 72A.5200 Lessee’s incidental and consequential damages.
(1) Incidental damages resulting from a lessor’s default include expenses reasonably incurred in inspection, receipt, transportation, and care and custody of goods rightfully rejected or...
- 72A.5210 Lessee’s right to specific performance or replevin.
(1) A judgment requiring specific performance may be entered if the goods are unique or in other proper circumstances. (2) A judgment for specific performance...
- 72A.5220 Lessee’s right to goods on lessor’s insolvency.
(1) Subject to subsection (2) of this section and even though the goods have not been shipped, a lessee who has paid a part or...
- 72A.5230 Lessor’s remedies.
(1) If a lessee wrongfully rejects or revokes acceptance of goods or fails to make a payment when due or repudiates with respect to a...
- 72A.5240 Lessor’s right to identify goods to lease contract.
(1) A lessor aggrieved under ORS 72A.5230 may: (a) Identify to the lease contract conforming goods not already identified if at the time the lessor...
- 72A.5250 Lessor’s right to possession of goods.
(1) If a lessor discovers the lessee to be insolvent, the lessor may refuse to deliver the goods. (2) After a default by the lessee...
- 72A.5260 Lessor’s stoppage of delivery in transit or otherwise.
(1) A lessor may stop delivery of goods in the possession of a carrier or other bailee if the lessor discovers the lessee to be...
- 72A.5270 Lessor’s rights to dispose of goods.
(1) After a default by a lessee under the lease contract of the type described in ORS 72A.5230 or after the lessor refuses to deliver...
- 72A.5280 Lessor’s damages for default.
(1) Except as otherwise provided with respect to damages liquidated in the lease agreement as provided in ORS 72A.5040 or otherwise determined pursuant to agreement...
- 72A.5290 Lessor’s action for the rent.
(1) After default by the lessee under the lease contract of the type described in ORS 72A.5230, or, if agreed after other default by the...
- 72A.5295 Lessor’s recovery for loss of or damage to residual interest in goods.
In addition to any other recovery permitted by this chapter or other law, the lessor may recover from the lessee an amount that will fully...
- 72A.5300 Lessor’s incidental damages.
Incidental damages to an aggrieved lessor include any commercially reasonable charges, expenses or commissions incurred in stopping delivery, in the transportation, care and custody of...
- 72A.5310 Standing to sue third parties for injury to goods.
(1) If a third party so deals with goods that have been identified to a lease contract as to cause actionable injury to a party...
