(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 that arose from an act or omission of the lessor, other than a claim by way of infringement or the like, which will interfere with the lessee’s enjoyment of its leasehold interest. (2) Except in a finance lease there is in a lease contract by a lessor who is a merchant regularly dealing in goods of the kind a warranty that the goods are delivered free of the rightful claim of any person by way of infringement or the like.

(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 merchant with respect to goods of that kind. (2) Goods to be merchantable must be at least goods that: (a) pass without objection in the trade under the description in the lease agreement; (b) in the case of fungible goods, are of fair average quality within the description; (c) are fit for the ordinary purposes for which goods of that type are used; (d) run, within the variation permitted by the lease agreement, of even kind, quality, and quantity within each unit and among all units involved; (e) are adequately contained, packaged, and labeled as the lease agreement may require; and (f) conform to any promises or affirmations of fact made on the container or label.

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 which the goods are required and that the lessee is relying on the lessor’s skill or judgment to select or furnish suitable goods, there is in the lease contract an implied warranty that the goods will be fit for that purpose. History: 1989 c 232 art 1 s 2A-213

This legal document, part of the Minnesota Statutes under the Uniform Commercial Code, governs the exclusion or modification of warranties in lease contracts. It provides guidelines for interpreting words or conduct related to the creation of express warranties and the negation or limitation of warranties. The document specifies the requirements for excluding or modifying the implied warranty of merchantability and the implied warranty of fitness. It also outlines circumstances where all implied warranties can be excluded, such as through expressions like ‘as is’ or ‘with all faults.

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 the parties determines which warranty is dominant. In ascertaining that intention the following rules apply: (a) Exact or technical specifications displace an inconsistent sample or model or general language of description. (b) A sample from an existing bulk displaces inconsistent general language of description. (c) Express warranties displace inconsistent implied warranties other than an implied warranty of fitness for a particular purpose.

A warranty to or for the benefit of a lessee under this article, whether express or implied, extends to any person who may reasonably be expected to use, consume, or be affected by the goods and who is injured by breach of the warranty. The operation of this section may not be excluded, modified, or limited, but an exclusion, modification, or limitation of the warranty, including any with respect to rights and remedies, effective against the lessee is also effective against the beneficiary designated under this section.

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 the parties. In the absence of explicit agreement, identification occurs: (a) when the lease contract is made if the lease contract is for a lease of goods that are existing and identified; (b) when the goods are shipped, marked, or otherwise designated by the lessor as goods to which the lease contract refers, if the lease contract is for a lease of goods that are not existing and identified; or (c) when the young are conceived, if the lease contract is for a lease of unborn young of animals.

This legal document, part of the Minnesota Statutes under the Uniform Commercial Code, governs the insurance and proceeds related to lease contracts. It establishes that a lessee obtains an insurable interest when goods are identified to the lease contract, even if they are nonconforming and the lessee has the option to reject them. The lessor has the right to substitute other goods until default, insolvency, or notification to the lessee that identification is final.

This provision, found in the Minnesota Statutes under the Uniform Commercial Code, governs the risk of loss in lease contracts. In general, the risk of loss is retained by the lessor and does not pass to the lessee, except in the case of a finance lease where the risk of loss passes to the lessee. If the lease contract requires or authorizes the goods to be shipped by carrier, the risk of loss passes to the lessee when the goods are duly delivered to the carrier.

This provision, found in the Minnesota Statutes under the Uniform Commercial Code, governs the risk of loss in lease contracts. If a tender or delivery of goods fails to conform to the lease contract and gives 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, the lessee may treat the risk of loss as having remained with the lessor from the beginning, to the extent of any deficiency in the lessee’s effective insurance coverage.