§ 2-A-201 — Statute of Frauds

Section 2-A-201. Statute of Frauds.\n * (1) A lease contract is not enforceable by way of action or defense\nunless:\n (a) the total payments to be made under the lease contract,\n excluding payments for options to renew or buy, are less than\n $1,000; or\n (b) there is a writing, signed by the party against whom\n enforcement is sought or by that party's authorized agent,\n sufficient to indicate that a lease contract has been made\n between the parties and to describe the goods leased and the\n lease term.\n * NB Effective until June 3, 2026\n * (1) A lease contract is not enforceable by way of action or defense\nunless:\n (a) the total payments to be made under the lease contract,\n excluding payments for options to renew or buy, are less than\n $1,000; or\n (b) there is a record, signed by the party against whom\n enforcement is sought or by that party's authorized agent,\n sufficient to indicate that a lease contract has been made\n between the parties and to describe the goods leased and the\n lease term.\n * NB Effective June 3, 2026\n (2) Any description of leased goods or of the lease term is sufficient\nand satisfies subsection (1)(b), whether or not it is specific, if it\nreasonably identifies what is described.\n * (3) A writing is not insufficient because it omits or incorrectly\nstates a term agreed upon, but the lease contract is not enforceable\nunder subsection (1)(b) beyond the lease term and the quantity of goods\nshown in the writing.\n * NB Effective until June 3, 2026\n * (3) A record is not insufficient because it omits or incorrectly\nstates a term agreed upon, but the lease contract is not enforceable\nunder subsection (1)(b) beyond the lease term and the quantity of goods\nshown in the record.\n * NB Effective June 3, 2026\n (4) A lease contract that does not satisfy the requirements of\nsubsection (1), but which is valid in other respects, is enforceable:\n (a) if the goods are to be specially manufactured or obtained for\n the lessee and are not suitable for lease or sale to others\n in the ordinary course of the lessor's business, and the\n lessor, before notice of repudiation is received and under\n circumstances that reasonably indicate that the goods are for\n the lessee, has made either a substantial beginning of their\n manufacture or commitments for their procurement;\n (b) if the party against whom enforcement is sought admits in\n that party's pleading, testimony, or otherwise in court that\n a lease contract was made, but the lease contract is not\n enforceable under this provision beyond the quantity of goods\n admitted; or\n (c) with respect to goods that have been received and accepted by\n the lessee.\n * (5) The lease term under a lease contract referred to in subsection\n(4) is:\n (a) if there is a writing signed by the party against whom\n enforcement is sought or by that party's authorized agent\n specifying the lease term, the term so specified;\n (b) if the party against whom enforcement is sought admits in\n that party's pleading, testimony, or otherwise in court a\n lease term, the term so admitted; or\n (c) a reasonable lease term.\n * NB Effective until June 3, 2026\n * (5) The lease term under a lease contract referred to in subsection\n(4) is:\n (a) if there is a record signed by the party against whom\n enforcement is sought or by that party's authorized agent\n specifying the lease term, the term so specified;\n (b) if the party against whom enforcement is sought admits in\n that party's pleading, testimony, or otherwise in court a\n lease term, the term so admitted; or\n (c) a reasonable lease term.\n * NB Effective June 3, 2026\n (6) A lease contract enforceable under this section shall not be\nrendered unenforceable by the operation of New York General Obligations\nLaw Section 5-701.\n