PART 2. 
FORMATION AND CONSTRUCTION OF LEASE CONTRACT



 



§490:2A-201  Statute of frauds.  (a)  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 writing, 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)  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)  A writing 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 writing.



(d)  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)  The lease term under a lease contract
referred to in subsection (d) is:



(1)  If there is a writing signed by the party against
whom enforcement is sought or by that party's authorized agency 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. [L 1991, c 40, pt of §1]