Pennsylvania § 2A201 Statute of frauds

Pennsylvania Statutes

§ 2A201 — Statute of frauds

Pennsylvania § 2A201

Title 13COMMERCIAL CODE

Ch. 2A2FORMATION AND CONSTRUCTION OF LEASE CONTRACT

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Bluebook

13 Pa. Cons. Stat. § 2A201 (2026).

Text

(a)General rule.--A lease contract is not enforceable by way of action or defense unless:

(1)the total payments to be made under the lease contract, excluding payments for options to renew or buy, are less than $1,000; or

(2)there is a record, signed by the party against whom enforcement is sought or by that party's authorized agent, sufficient to indicate that a lease contract has been made between the parties and to describe the goods leased and the lease term.

(b)Description of goods or term.--Any description of leased goods or of the lease term is sufficient and satisfies subsection (a)(2), whether or not it is specific, if it reasonably identifies what is described.

(c)Omitted or incorrectly stated terms.--A record is not insufficient because it omits or incorrectly states a

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(a) General rule.--A lease contract is not enforceable by way of action or defense unless:

(1) the total payments to be made under the lease contract, excluding payments for options to renew or buy, are less than $1,000; or

(2) there is a record, signed by the party against whom enforcement is sought or by that party's authorized agent, sufficient to indicate that a lease contract has been made between the parties and to describe the goods leased and the lease term.

(b) Description of goods or term.--Any description of leased goods or of the lease term is sufficient and satisfies subsection (a)(2), whether or not it is specific, if it reasonably identifies what is described.

(c) Omitted or incorrectly stated terms.--A record is not insufficient because it omits or incorrectly states a term agreed upon, but the lease contract is not enforceable under subsection (a)(2) beyond the lease term and the quantity of goods shown in the record.

(d) Enforceability of lease not satisfying general requirements.--A lease contract that does not satisfy the requirements of subsection (a), but which is valid in other respects, is enforceable:

(1) if the goods are to be specially manufactured or obtained for the lessee and are not suitable for lease or sale to others in the ordinary course of the lessor's business, and the lessor, before notice of repudiation is received and under circumstances that reasonably indicate that the goods are for the lessee, has made either a substantial beginning of their manufacture or commitments for their procurement;

(2) if the party against whom enforcement is sought admits in that party's pleading, testimony or otherwise in court that a lease contract was made, but the lease contract is not enforceable under this provision beyond the quantity of goods admitted; or

(3) with respect to goods that have been received and accepted by the lessee.

(e) Term of lease not satisfying general requirements.--The lease term under a lease contract referred to in subsection (d) is:

(1) if there is a record signed by the party against whom enforcement is sought or by that party's authorized agent specifying the lease term, the term so specified;

(2) if the party against whom enforcement is sought admits in that party's pleading, testimony or otherwise in court a lease term, the term so admitted; or

(3) a reasonable lease term.

Legislative History

(July 1, 2024, P.L.450, No.41, eff. 60 days) 2024 Amendment.Act 41 amended subsecs. (a)(2), (c) and (e)(1). See section 1 of Act 41 in the appendix to this title for special provisions relating to findings and declarations.