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Can you summarize MICL, 174-1962-2A?
UNIFORM COMMERCIAL CODE (440.1101 - 440.11102) > ARTICLE 2A LEASES (440.2801...440.2982)
Short Summary
This legal document, governed by the Michigan Compiled Laws under the Uniform Commercial Code, specifically Article 2A Leases, addresses various aspects related to default in lease contracts. It outlines the damages that the lessor may recover from the lessee, including accrued and unpaid rent, present value of rent for the remaining lease term, and incidental damages. The document also discusses the lessor’s responsibility to hold identified goods for the lessee for the remaining lease term, unless the goods are disposed of before the collection of damages. In such cases, the lessor’s recovery against the lessee is governed by other sections. Additionally, it states that payment of the judgment for damages entitles the lessee to use and possession of the remaining goods. The document also mentions that a lessor who is not entitled to rent must still be awarded damages for nonacceptance in certain circumstances. No specific penalties are mentioned in this document. This legal document, found in the Michigan Compiled Laws under the Uniform Commercial Code, specifically Article 2A Leases, addresses the repudiation of lease contracts. It states that if either party repudiates a lease contract before the performance is due and the loss of that performance substantially impairs the value of the lease contract to the other party, the aggrieved party has several options. They can await retraction of the repudiation and performance by the repudiating party for a commercially reasonable time, 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 aggrieved party also has the option to suspend performance or proceed with the lessor’s right to identify goods to the lease contract or salvage unfinished goods. The document does not mention any specific penalties for non-compliance or violation of its provisions. This section, part of the Uniform Commercial Code (UCC) Article 2A Leases, governs the concept of insurable interest in goods within lease contracts. It states that a lessee obtains an insurable interest when existing goods are identified to the lease contract, even if they are nonconforming and the lessee has the option to reject them. The lessor, until default, insolvency, or notification to the lessee that identification is final, may substitute other goods for those identified if the lessee’s insurable interest is solely due to the lessor’s identification. However, the lessor retains an insurable interest until the lessee exercises the option to buy and the risk of loss passes to the lessee. This section does not impair any insurable interest recognized under other statutes or rules of law. Additionally, the parties involved in the lease contract can agree on the obligation to obtain and pay for insurance covering the goods, as well as determine the beneficiary of the insurance proceeds. This section also addresses the risk of loss, repudiation, and default in lease contracts. It outlines the rules regarding the passage of risk of loss to the lessee when the time of passage is not stated. If the goods fail to conform to the lease contract and give the lessee a right of rejection, the risk of loss remains with the lessor or supplier until cure or acceptance. If the lessee rightfully revokes acceptance, they may treat the risk of loss as having remained with the lessor from the beginning, to the extent of any deficiency in their effective insurance coverage. Additionally, if the lessee repudiates or is in default under the lease contract for conforming goods already identified, the lessor or supplier may treat the risk of loss as resting on the lessee for a commercially reasonable time, to the extent of any deficiency in their effective insurance coverage. This section also governs the implied warranty of merchantability and other implied warranties in lease contracts. It applies to lessors and lessees involved in lease agreements. The section states that in a lease contract, a warranty of merchantability is implied if the lessor is a merchant with respect to goods of that kind, except in a finance lease. The goods to be merchantable must meet certain criteria, including passing without objection in the trade, being of fair average quality (in the case of fungible goods), being fit for ordinary purposes, running within the permitted variation, and being adequately contained, packaged, and labeled. The section also mentions that other implied warranties may arise from course of dealing or usage of trade. This section also pertains to the formation and construction of lease contracts. It provides guidelines for the interpretation of words or conduct related to the creation of express warranties and the negation or limitation of warranties. The document outlines the requirements for excluding or modifying the implied warranty of merchantability or fitness, including the need for specific language, a writing, and conspicuousness. It also discusses the circumstances under which implied warranties can be excluded by expressions like ‘as is’ or ‘with all faults’, or by the lessee’s examination or refusal to examine the goods. Additionally, the document mentions that course of dealing, course of performance, or usage of trade can also exclude or modify implied warranties. Finally, it states the requirements for excluding or modifying a warranty against interference or infringement. This legal document is part of the Michigan Compiled Laws and falls under the Uniform Commercial Code. It specifically pertains to Article 2A Leases, which covers lease contracts for goods. The document provides definitions for various terms used in the article, such as ‘buyer in ordinary course of business,’ ‘commercial unit,’ ‘conforming,’ ‘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.’ It also references definitions from other articles within the Uniform Commercial Code. The document does not mention any exemptions or penalties. Its main purpose is to establish clear definitions and principles of construction and interpretation for lease contracts governed by Article 2A. The legal document content, governed by the Uniform Commercial Code (UCC) Article 2A Leases, addresses various aspects related to lease contracts. It explains the treatment of goods as accessions when they are installed or affixed to other goods. It establishes the priority of interests, stating that the interest of a lessor or 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). The interest of a lessor or lessee under a lease contract entered into at or after the goods became accessions is superior to subsequently acquired interests, but subordinate to existing interests in the whole at the time of the lease contract, unless the holders of such interests have consented to the lease or disclaimed an interest in the goods. The interest of a lessor or lessee under a lease contract described in subsection (2) or (3) is subordinate to the interest of a buyer or lessee in the ordinary course of business who acquired an interest in the whole after the goods became accessions, or a creditor with a security interest in the whole perfected before the lease contract was made. The legal document content also allows a lessor or lessee of accessions with a superior interest to remove the goods from the whole in certain circumstances, but they must reimburse any holder of an interest in the whole for the cost of repair of physical injury caused by the removal. The person entitled to reimbursement may refuse permission to remove until adequate security is provided. The legal document content further addresses the rights and remedies of creditors in relation to lease contracts and sale contracts. It states that a creditor of a lessee takes subject to the lease contract, except as otherwise provided. 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. A lessee takes a leasehold interest subject to a security interest held by a creditor of the lessor, except as otherwise provided. The legal document content also covers the transfer of goods from a lessee to a buyer or sublessee, outlining the rights and powers of the buyer or sublessee. It clarifies that each provision of the 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. Additionally, the legal document content governs the transfer of leasehold interest from a lessor to a subsequent lessee, specifying the rights and obligations of the subsequent lessee, the lessor, and the existing lessee under an existing lease contract. No specific exemptions or penalties are mentioned in the legal document content.
Whom does it apply to?
The legal document applies to lessors, lessees, buyers, sublessees, creditors, and suppliers involved in lease contracts for goods.
What does it govern?
This legal document, governed by the Michigan Compiled Laws under the Uniform Commercial Code, specifically Article 2A Leases, addresses various aspects related to default in lease contracts. It also covers the repudiation of lease contracts, insurable interest in goods within lease contracts, risk of loss, and implied warranties in lease contracts. It further addresses the formation and construction of lease contracts and the treatment of goods as accessions when they are installed or affixed to other goods. The document also covers the rights and remedies of creditors in relation to lease contracts and sale contracts, as well as the transfer of goods from a lessee to a buyer or sublessee and the transfer of leasehold interest from a lessor to a subsequent lessee.
What are exemptions?
No specific exemptions are mentioned in this legal document.
What are the Penalties?
No specific penalties are mentioned in this legal document.
Jurisdiction
Michigan