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Can you summarize Chapter 62A.2A WARC?
UNIFORM COMMERCIAL CODE > Leases.
Short Summary
The provided legal document content consists of two sections: RCW 62A.2A-102 and RCW 62A.2A-103. RCW 62A.2A-102 outlines the scope of application for Article 2A of the Uniform Commercial Code (UCC) in the state of Washington. It applies to any transaction, regardless of form, that creates a lease. The document also addresses the application of this Article in the case of hybrid leases, where the lease-of-goods aspects may or may not predominate. In such cases, specific provisions of this Article apply depending on the nature of the lease. However, this Article does not preclude the application of other laws to aspects of the lease that do not relate to the lease of goods. The document does not mention any specific exemptions or penalties related to its application. RCW 62A.2A-103 provides definitions and an index of definitions for lease contracts under the Uniform Commercial Code (UCC) in the Revised Code of Washington (RCW). It defines various terms related to lease contracts, such as ‘buyer in ordinary course of business,’ ‘cancellation,’ ‘commercial unit,’ ‘conforming goods,’ ‘consumer lease,’ ‘fault,’ ‘finance lease,’ ‘goods,’ ‘installment lease contract,’ ’lease,’ ’lease agreement,’ ’lease contract,’ ’leasehold interest,’ ’lessee,’ ’lessee in ordinary course of business,’ ’lessor,’ ’lessor’s residual interest,’ ’lien,’ ’lot,’ ‘merchant lessee,’ ‘present value,’ ‘purchase,’ ‘sublease,’ ‘supplier,’ ‘supply contract,’ and ’termination.’ The document also references definitions from other articles of the UCC that apply to lease contracts. It is important for individuals and businesses involved in lease transactions to understand these definitions to ensure compliance with the applicable laws and regulations. The provided legal document content pertains to the formation and construction of lease contracts under the Uniform Commercial Code (UCC). It outlines the requirements for enforceability of lease contracts, including the need for a writing signed by the party against whom enforcement is sought. The document also discusses exceptions to the writing requirement and the validity of lease contracts in other respects. Additionally, it addresses the formation of lease contracts, firm offers, modification and rescission of lease contracts, warranties in lease contracts, risk of loss, insurance and proceeds, and default. The document provides guidelines and regulations for these aspects of lease contracts. No specific exemptions or penalties are mentioned in this document. The provided legal document content covers various aspects related to lease contracts and the rights and obligations of the parties involved. It discusses the enforceability of lease contracts, the transfer of interests and rights under lease contracts, and the impact of possession or absence of possession on the validity of a lease. The document also addresses the rights and interests of subsequent lessees, buyers, and sublessees, as well as the priority of possessory liens on goods subject to a lease contract. It further explains the rights of creditors in relation to lease contracts and sales contracts, including the treatment of lease contracts as void under certain circumstances. The document also covers the rights of lessors and lessees when goods become fixtures or accessions, including the priority of their interests and the ability to remove the goods. Finally, it mentions the possibility of subordination by agreement. The provided legal document content applies to parties to lease contracts, purchasers of goods, creditors of the parties, subsequent lessees, buyers or sublessees of goods, possessory lienholders, creditors of a lessee, creditors of a lessor, and lessors and lessees of fixtures and accessions. The provided legal document, governed by the Revised Code of Washington under the Uniform Commercial Code, specifically addresses the performance of lease contracts. It imposes an obligation on each party to ensure that the other party’s expectation of receiving due performance is not impaired. If reasonable grounds for insecurity arise regarding the performance of either party, the insecure party may demand adequate assurance of due performance in writing. Until such assurance is received, the insecure party may suspend any performance for which they have not yet received the agreed return, if commercially reasonable. If assurance of due performance is not provided within a reasonable time, not exceeding thirty days after receipt of a demand, it 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. The document also addresses the concept of anticipatory repudiation in lease contracts, providing options for the aggrieved party if one party repudiates a lease contract for a performance that is not yet due and the loss of that performance substantially impairs the value of the lease contract. The aggrieved party can await retraction of the repudiation and performance by the repudiating party, make a demand for assurance of future performance, or resort to any right or remedy upon default under the lease contract or this Article. The document further outlines rules regarding excused performance and the circumstances under which delay in delivery or nondelivery by a lessor or supplier is not considered a default under the lease contract. Performance may be deemed impracticable if a contingency occurs, which was assumed to not happen when the lease contract was made, or if compliance with governmental regulations or orders makes performance impracticable. The document also mentions the allocation of production and deliveries among customers when only part of the lessor’s or supplier’s capacity to perform is affected. In the case of a finance lease, the lessee’s promises under the lease contract become irrevocable and independent upon the lessee’s acceptance of the goods. No specific exemptions or penalties are mentioned in this document. This legal document, part of the Revised Code of Washington, specifically addresses default in general under a lease contract. It determines whether the lessor or the lessee is in default based on the lease agreement and this Article. If either party is in default, the party seeking enforcement has rights and remedies as provided in this Article and the lease agreement. The party seeking enforcement may pursue various procedures, including self-help, judicial or nonjudicial procedures, administrative proceedings, or arbitration. The rights and remedies mentioned in this document are cumulative, unless otherwise provided in RCW 62A.1-305(a) or this Article or the lease agreement. If the lease agreement covers both real property and goods, the party seeking enforcement may proceed under this Part 5 for goods or under other applicable law for both real property and goods. This Part 5 does not apply in that case. No specific penalties are mentioned in this document. 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. This legal document, governed by the Revised Code of Washington, specifically the Uniform Commercial Code, addresses the remedies available to the lessor in case of default by the lessee in a lease contract. If the lessee wrongfully rejects or revokes acceptance of goods, fails to make a payment when due, or repudiates with respect to a part or the whole, the lessor may exercise various remedies. These include canceling the lease contract, proceeding with goods not identified to the lease contract, withholding delivery of goods, stopping delivery of goods by any bailee, disposing of the goods and recovering damages, retaining the goods and recovering damages, or recovering rent. The lessor may also exercise any other rights or pursue any other remedies provided in the lease contract. If the lessor does not fully exercise their rights or obtain a remedy, they may recover the loss resulting from the lessee’s default, together with incidental damages, less expenses saved. If the lessee is otherwise in default, the lessor may exercise the rights and pursue the remedies provided in the lease contract, including the right to cancel the lease. The document also clarifies that the lessor may recover losses if the default substantially impairs the value of the lease contract or as provided in subsection (2) of the document. This provision, found in the Revised Code of Washington under the Uniform Commercial Code, specifically addresses the lessor’s right to identify goods in a lease contract after default by the lessee. The lessor has the authority to identify conforming goods that were in their or the supplier’s possession or control at the time of default. Additionally, the lessor can dispose of goods intended for the lease contract, even if they are unfinished. In the event of unfinished goods, the aggrieved lessor or supplier can choose to complete manufacture and wholly identify the goods to the lease contract, or cease manufacture and lease, sell, or dispose of the goods in a reasonable manner. This provision aims to provide guidance on the actions lessors can take in the event of default by the lessee and the handling of goods involved in the lease contract. If a lessor discovers the lessee to be insolvent, the lessor may refuse to deliver the goods. After a default by the lessee under the lease contract of the type described in RCW 62A.2A-523 (1) or (3)(a) or, if agreed, after other default by the lessee, the lessor has the right to take possession of the goods. If the lease contract so provides, the lessor may require the lessee to assemble the goods and make them available to the lessor at a place to be designated by the lessor which is reasonably convenient to both parties. Without removal, the lessor may render unusable any goods employed in trade or business, and may dispose of goods on the lessee’s premises (RCW 62A.2A-527). The lessor may proceed under subsection (2) of this section without judicial process if it can be done without breach of the peace or the lessor may proceed by action. This provision, found in the Revised Code of Washington under the Uniform Commercial Code, specifically addresses the rights of a lessor to stop the delivery of goods in transit or otherwise. The lessor is allowed to stop delivery if they discover that the lessee is insolvent or if the lessee repudiates the lease contract or fails to make a payment due before delivery. The lessor can exercise this right until the goods are received by the lessee or until there is acknowledgment from a bailee or carrier that they hold the goods for the lessee. To stop delivery, the lessor must notify the bailee in a manner that allows them to prevent delivery. The bailee is then obligated to hold and deliver the goods according to the lessor’s directions. However, a carrier who has issued a nonnegotiable bill of lading is not obliged to obey a stop delivery notification from someone other than the consignor. This provision does not mention any specific penalties for non-compliance. This section of the Revised Code of Washington, specifically under the Uniform Commercial Code and Leases, outlines the rights of a lessor to dispose of goods in various circumstances. After a default by a lessee or refusal to deliver goods, the lessor may dispose of the goods through lease, sale, or other means. If the disposition is done through a lease agreement similar to the original one and in good faith, the lessor may recover accrued and unpaid rent, the present value of the remaining lease term, and any incidental damages. If the disposition does not qualify for treatment under the previous provision, the lessor may recover as if they had not disposed of the goods. A subsequent buyer or lessee who acquires the goods in good faith takes them free of the original lease contract. The lessor is not accountable to the lessee for any profit made on the disposition. This section also mentions the lessee’s obligation to account for any excess over their security interest in case of rightful rejection or revocation of acceptance. This section of the Revised Code of Washington, specifically under the Uniform Commercial Code and Leases, governs the lessor’s damages in cases of nonacceptance, failure to pay, repudiation, or other default by the lessee. The lessor has the option to retain the goods or dispose of them through lease agreement, sale, or other means. In case of default, the lessor may recover damages, including accrued and unpaid rent, present value of the remaining lease term minus market rent, and any incidental damages allowed under RCW 62A.2A-530. If the measure of damages is inadequate, the lessor may claim the present value of the profit they would have made from full performance by the lessee, along with incidental damages and due allowance for costs reasonably incurred. The document does not specify any specific penalties for non-compliance or violation of its provisions. This legal document, found in the Revised Code of Washington under the Uniform Commercial Code, specifically addresses the lessor’s action for rent in the context of a lease contract. It outlines the conditions under which the lessor may recover damages from the lessee in case of default. The damages include accrued and unpaid rent, the present value of rent for the remaining lease term, and any incidental damages allowed under the relevant sections of the code. The lessor is required to hold identified goods in their control for the remaining lease term, but may dispose of them before collecting the judgment for damages. Payment of the judgment entitles the lessee to use and possess the remaining goods in accordance with the lease agreement. Additionally, the document mentions that a lessor who is not entitled to rent under this section may still be awarded damages for nonacceptance. No specific penalties are mentioned in this document. 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 goods after the lessee’s default, in connection with return or disposition of the goods, or otherwise resulting from the default. This provision, found in the Revised Code of Washington under the Uniform Commercial Code, specifically in the Leases section, addresses the standing to sue third parties for injury to goods. If a third party causes actionable injury to a party to the lease contract by dealing with goods that have been identified to the lease contract, both the lessor and the lessee have a right of action against the third party. The lessee can exercise this right if they have a security interest in the goods, an insurable interest in the goods, or bear the risk of loss under the lease contract. If the party plaintiff did not bear the risk of loss at the time of the injury and there is no arrangement for disposition of the recovery, their suit or settlement is as a fiduciary for the other party to the lease contract. Either party, with the consent of the other, may sue for the benefit of whom it may concern. In addition to any other recovery permitted by this Article or other law, the lessor may recover from the lessee an amount that will fully compensate the lessor for any loss of or damage to the lessor’s residual interest in the goods caused by the default of the lessee.
Whom does it apply to?
Parties to lease contracts, purchasers of goods, creditors of the parties, subsequent lessees, buyers or sublessees of goods, possessory lienholders, creditors of a lessee, creditors of a lessor, lessors and lessees of fixtures and accessions
What does it govern?
Formation and construction of lease contracts, rights and obligations of parties involved, performance of lease contracts, default in lease contracts, remedies available to lessors in case of default, lessor's right to identify goods after default, lessor's right to stop delivery of goods, lessor's right to dispose of goods, lessor's damages in case of default, lessor's action for rent, standing to sue third parties for injury to goods
What are exemptions?
No specific exemptions are mentioned in these documents.
What are the Penalties?
No specific penalties are mentioned in these documents.
Jurisdiction
Washington