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Commercial Code > COMMERCIAL CODE - LEASES
Short Summary
The provided legal document content pertains to the South Carolina Code of Laws, specifically the Commercial Code - Leases section. It governs lease contracts and applies to individuals and entities involved in lease contracts. The document addresses various aspects of lease contracts, including unconscionability, waiver or renunciation of claims, choice of law and judicial forum, compliance with certificate of title statutes, and conflicts between the Commercial Code and other statutes or decisions. It provides definitions for terms related to lease contracts and references definitions from other chapters. The document does not mention any specific exemptions or penalties. Overall, it serves as a guide for parties involved in lease contracts in South Carolina. The document covers various aspects of lease contracts, including the formation and construction of lease contracts, risk of loss, insurable interest, warranties, modification or rescission, acceptance, irrevocability of lease contract offers, sufficiency of agreement, effect of affixing a seal, and interpretation of lease contract terms. These documents apply to lessors, lessees, and suppliers involved in lease contracts. The risk of loss in lease contracts is generally retained by the lessor, except in the case of a finance lease where the risk of loss passes to the lessee. The documents also outline the rules regarding insurable interest in lease contracts and the exclusion or modification of warranties. Express warranties can be created in lease contracts through affirmations of fact or promises made by the lessor. The extension of benefits of supplier’s promises and warranties to lessees is also addressed. The documents provide guidelines for the modification or rescission of lease contracts and the acceptance of lease contracts. Offers to make lease contracts must be construed as inviting acceptance in any reasonable manner. The documents also address the sufficiency of agreement to constitute a lease contract and the effect of affixing a seal to a lease contract. Additionally, the interpretation of lease contract terms is discussed, allowing for explanations or supplements based on course of dealing, usage of trade, or course of performance. No specific exemptions or penalties are mentioned in these documents. The documents cover various aspects related to lease contracts and sales contracts. They address the rights of lessors and lessees when goods become accessions or fixtures, establishing priority rules for their interests. The documents also discuss the special rights of creditors in relation to lease contracts and sales contracts, as well as the priority of liens, security interests, and other claims to goods. Additionally, the documents cover the sale or sublease of goods by a lessee, subsequent lease of goods by a lessor, alienability of a party’s interest under a lease contract or the lessor’s interest in goods, delegation of performance and transfer of rights, and the effectiveness and enforceability of lease contracts. These documents apply to lessors, lessees, buyers, sublessees, creditors, sellers, and subsequent lessees involved in lease contracts and sales contracts. No specific exemptions or penalties are mentioned in these documents. This legal document, found in the South Carolina Code of Laws under the Commercial Code - Leases section, governs the performance of lease contracts. It outlines the procedures for excused performance in specific situations. The document states that 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. These promises are effective and enforceable between the parties and by or against third parties, and they are not subject to cancellation, termination, modification, repudiation, excuse, or substitution without the consent of the party to whom the promise runs. However, 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. The document also addresses excused performance in cases where delivery or nondelivery by a lessor or supplier is delayed or prevented due to impracticability caused by a contingency that was assumed not to occur or compliance with valid governmental regulations or orders. It allows the lessor or supplier to allocate production and deliveries among customers in a fair and reasonable manner. If the agreed berthing, loading, or unloading facilities fail, the agreed type of carrier becomes unavailable, or the agreed manner of delivery becomes commercially impracticable, but a commercially reasonable substitute is available, the substitute performance must be tendered and accepted. If the agreed means or manner of payment fails because of domestic or foreign governmental regulation, the lessor may withhold or stop delivery unless the lessee provides a commercially substantial equivalent means or manner of payment. 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. The document also covers the situation of anticipatory repudiation in a lease contract. It states that until the repudiating party’s next performance is due, the repudiating party can retract the repudiation unless the aggrieved party has canceled the lease contract or materially changed their position or otherwise indicated that they consider the repudiation final. Retraction may be made by any method that clearly indicates the repudiating party’s intent to perform under the lease contract and includes any assurance demanded. Retraction reinstates the repudiating party’s rights under the lease contract with due excuse and allowance for any delay occasioned by the repudiation. Additionally, the document addresses the situation where reasonable grounds for insecurity arise regarding the performance of either party. The insecure party may demand adequate assurance of due performance in writing and may suspend any performance for which they have not yet received the agreed return until assurance is received. Failure to provide assurance within a reasonable time constitutes a repudiation of the lease contract. The reasonableness of grounds for insecurity and the adequacy of any assurance offered are determined according to commercial standards when the parties involved are merchants. Acceptance of nonconforming delivery or payment does not prejudice the aggrieved party’s right to demand adequate assurance of future performance. These legal documents found in the South Carolina Code of Laws, specifically in the Commercial Code - Leases section, cover various aspects related to lease contracts. They govern the determination of damages based on market rent, actions for default under a lease contract, cancellation and termination of lease contracts, liquidation of damages in lease agreements, and modification or impairment of rights and remedies in lease agreements. The determination of damages based on market rent is to be done according to the prevailing rent for the use of the goods concerned, considering the rent at specified times and places. If evidence of rent for the same lease term and prevailing at the specified times or places is not readily available, a reasonable substitute can be used. Reports in official publications, trade journals, newspapers, or periodicals of general circulation published as reports of established markets can be used as evidence. The documents establish a statute of limitations for actions for default under a lease contract, stating that they must be commenced within four years after the cause of action accrued. The documents also address the cancellation and termination of lease contracts, stating that on cancellation, any remaining obligations are discharged, but rights based on prior default or performance still survive. On termination, all remaining obligations are discharged, but rights based on prior default or performance still survive. The documents allow for the liquidation of damages in lease agreements, provided the amount or formula is reasonable. They also address the modification or impairment of rights and remedies in lease agreements, allowing for additional or alternative rights and remedies, as well as limitations or alterations to the measure of damages recoverable. The use of remedies provided in the lease agreement or under these documents is optional, unless expressly agreed to be exclusive. The documents do not specify any specific exemptions or penalties. This section of the South Carolina Code of Laws, specifically the Commercial Code - Leases, governs the calculation of damages for lessees in cases of nondelivery, repudiation, default, and breach of warranty regarding accepted goods. The measure of damages depends on whether the lessee elects to cover or not, and if cover is by lease agreement or by purchase. The damages include the present value of the difference between the market rent and the original rent, computed for the remaining lease term, along with incidental and consequential damages, less expenses saved due to the lessor’s default. Market rent is determined at the place for tender or the place of arrival. If the lessee has accepted goods and given notification, the measure of damages for nonconforming tender or delivery or other default by the lessor is determined in a reasonable manner, considering the loss resulting from the lessor’s default, along with incidental and consequential damages, less expenses saved. In cases of breach of warranty, the measure of damages is the present value of the difference between the value of the use of the goods accepted and the value if they had been as warranted for the lease term, along with incidental and consequential damages, less expenses saved due to the lessor’s default or breach of warranty. The provided legal document content pertains to the South Carolina Code of Laws, specifically the Commercial Code - Leases section. It outlines the rights and remedies available to lessors in case of default by the lessee. The lessor may recover damages for any loss of or damage to their residual interest in the goods caused by the lessee’s default. The lessor is also entitled to incidental damages, which include charges, expenses, or commissions incurred in stopping delivery, transportation, care and custody of goods, return or disposition of goods, or other damages resulting from the default. The documents also address the lessor’s ability to dispose of goods, either through lease, sale, or other means, and the subsequent buyer or lessee’s rights. Additionally, the documents discuss the lessor’s right to stop delivery of goods in transit or otherwise, under certain circumstances. The lessor may refuse to deliver goods if the lessee is insolvent or has repudiated the lease contract. The lessor may also take possession of the goods after default by the lessee and may render the goods unusable or dispose of them on the lessee’s premises. The documents further outline the lessor’s rights regarding the identification and disposal of goods in lease contracts. Overall, these documents apply to lessors and lessees involved in lease contracts governed by the South Carolina Code of Laws, specifically the Commercial Code - Leases section. No specific exemptions or penalties are mentioned in these documents.
Whom does it apply to?
Lessors, lessees, suppliers, buyers, sublessees, creditors, sellers, subsequent lessees
What does it govern?
Lease contracts, formation and construction of lease contracts, risk of loss, insurable interest, warranties, modification or rescission, acceptance, irrevocability of lease contract offers, sufficiency of agreement, effect of affixing a seal, interpretation of lease contract terms, determination of damages, actions for default, cancellation and termination of lease contracts, liquidation of damages, modification or impairment of rights and remedies
What are exemptions?
No specific exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
South Carolina