Illinois Compiled Statutes 810 Commercial Code: Article 2A - Leases

Part 1. General Provisions

• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-101
  Short title. This Article shall be known and may be cited as the Uniform Commercial Code; Leases. (Source: P.A. 87-493.)
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-102
  Scope. This Article applies to any transaction, regardless of form, that creates a lease. (Source: P.A. 87-493.)
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-103
  Definitions and index of definitions. (1) In this Article unless the context otherwise requires: (a) "Buyer in ordinary course of business" means a person who,...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-104
  Leases subject to other law. (1) A lease, although subject to this Article, is also subject to any applicable: (a) certificate of title statute...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-105
  Territorial application of Article to goods covered by certificate of title. Subject to the provisions of Sections 2A-304(3) and 2A-305(3), with respect to goods...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-106
  Limitation on power of parties to consumer lease to choose applicable law and judicial forum. (1) If the law chosen by the parties to...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-107
  Waiver or renunciation of claim or right after default. Any claim or right arising out of an alleged default or breach of warranty may...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-108
  Unconscionability. (1) If the court as a matter of law finds a lease contract or any clause of a lease contract to have been...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-109
  Option to accelerate at will. (1) A term providing that one party or his or her successor in interest may accelerate payment or performance...

Part 2. Formation and Construction of Lease Contract

• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-201
  Statute of frauds. (1) A lease contract is not enforceable by way of action or defense unless: (a) the total payments to be made...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-202
  Final written expression; parol or extrinsic evidence. Terms with respect to which the confirmatory memoranda of the parties agree or which are otherwise set...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-203
  Seals inoperative. The affixing of a seal to a writing evidencing a lease contract or an offer to enter into a lease contract does...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-204
  Formation in general. (1) A lease contract may be made in any manner sufficient to show agreement, including conduct by both parties which recognizes...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-205
  Firm offers. An offer by a merchant to lease goods to or from another person in a signed writing that by its terms gives...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-206
  Offer and acceptance in formation of lease contract. (1) Unless otherwise unambiguously indicated by the language or circumstances, an offer to make a lease...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-207
  (Blank). (Source: P.A. 95-895, eff. 1-1-09.)
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-208
  Modification, rescission, and waiver. (1) An agreement modifying a lease contract needs no consideration to be binding. (2) A signed lease agreement that excludes...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-209
  Lessee under finance lease as beneficiary of supply contract. (1) The benefit of a supplier's promises to the lessor under the supply contract and...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-210
  Express warranties. (1) Express warranties by the lessor are created as follows: (a) Any affirmation of fact or promise made by the lessor to...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-211
  Warranties against interference and against infringement; lessee's obligation against infringement. (1) There is in a lease contract a warranty that for the lease term...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-212
  Implied warranty of merchantability. (1) Except in a finance lease, a warranty that the goods will be merchantable is implied in a lease contract...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-213
  Implied warranty of fitness for particular purpose. Except in a finance lease, if the lessor at the time the lease contract is made has...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-214
  Exclusion or modification of warranties. (1) Words or conduct relevant to the creation of an express warranty and words or conduct tending to negate...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-215
  Cumulation and conflict of warranties express or implied. Warranties, whether express or implied, must be construed as consistent with each other and as cumulative,...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-216
  Third-party beneficiaries of express and implied warranties. A warranty to or for the benefit of a lessee under this Article, whether express or implied,...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-217
  Identification. Identification of goods as goods to which a lease contract refers may be made at any time and in any manner explicitly agreed...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-218
  Insurance and proceeds. (1) A lessee obtains an insurable interest when existing goods are identified to the lease contract even though the goods identified...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-219
  Risk of loss. (1) Except in the case of a finance lease, risk of loss is retained by the lessor and does not pass...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-220
  Effect of default on risk of loss. (1) Where risk of loss is to pass to the lessee and the time of passage is...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-221
  Casualty to identified goods. If a lease contract requires goods identified when the lease contract is made, and the goods suffer casualty without fault...

Part 3. Effect of Lease Contract

• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-301
  Enforceability of lease contract. Except as otherwise provided in this Article, a lease contract is effective and enforceable according to its terms between the...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-302
  Title to and possession of goods. Except as otherwise provided in this Article, each provision of this Article applies whether the lessor or a...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-303
  Alienability of party's interest under lease contract or of lessor's residual interest in goods; delegation of performance; transfer of rights. (1) As used in...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-304
  Subsequent lease of goods by lessor. (1) Subject to Section 2A-303, a subsequent lessee from a lessor of goods under an existing lease contract...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-305
  Sale or sublease of goods by lessee. (1) Subject to the provisions of Section 2A-303, a buyer or sublessee from the lessee of goods...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-306
  Priority of certain liens arising by operation of law. If a person in the ordinary course of his or her business furnishes services or...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-307
  Priority of liens arising by attachment or levy on, security interests in, and other claims to goods. (1) Except as otherwise provided in Section...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-308
  Special rights of creditors. (1) A creditor of a lessor in possession of goods subject to a lease contract may treat the lease contract...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-309
  Lessor's and lessee's rights when goods become fixtures. (1) In this Section: (a) goods are "fixtures" when they become so related to particular real...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-310
  Lessor's and lessee's rights when goods become accessions. (1) Goods are "accessions" when they are installed in or affixed to other goods. (2) The...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-311
  Priority subject to subordination. Nothing in this Article prevents subordination by agreement by any person entitled to priority. (Source: P.A. 87-493.)

Part 4. Performance of Lease Contract: Repudiated, Substituted, and Excused

• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-401
  Insecurity; adequate assurance of performance. (1) A lease contract imposes an obligation on each party that the other's expectation of receiving due performance will...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-402
  Anticipatory repudiation. If either party repudiates a lease contract with respect to a performance not yet due under the lease contract, the loss of...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-403
  Retraction of anticipatory repudiation. (1) Until the repudiating party's next performance is due, the repudiating party can retract the repudiation unless, since the repudiation,...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-404
  Substituted performance. (1) If without fault of the lessee, the lessor and the supplier, the agreed berthing, loading, or unloading facilities fail or the...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-405
  Excused performance. Subject to Section 2A-404 on substituted performance, the following rules apply: (a) Delay in delivery or nondelivery in whole or in part...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-406
  Procedure on excused performance. (1) If the lessee receives notification of a material or indefinite delay or an allocation justified under Section 2A-405, the...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-407
  Irrevocable promises; finance leases. (1) In the case of a finance lease that is not a consumer lease the lessee's promises under the lease...

Part 5. Default

A. in General

• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-501
  Default; procedure. (1) Whether the lessor or the lessee is in default under a lease contract is determined by the lease agreement and this Article....
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-502
  Notice after default. Except as otherwise provided in this Article or the lease agreement, the lessor or lessee in default under the lease contract...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-503
  Modification or impairment of rights and remedies. (1) Except as otherwise provided in this Article, the lease agreement may include rights and remedies for...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-504
  Liquidation of damages. (1) Damages payable by either party for default, or any other act or omission, including indemnity for loss or diminution of...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-505
  Cancellation and termination and effect of cancellation, termination, rescission, or fraud on rights and remedies. (1) On cancellation of the lease contract, all obligations...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-506
  Statute of limitations. (1) An action for default under a lease contract, including breach of warranty or indemnity, must be commenced within 4 years...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-507
  Proof of market rent; time and place. (1) Damages based on market rent (Section 2A-519 or 2A-528) are determined according to the rent for...

B. Default by Lessor

• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-508
  Lessee's remedies. (1) If a lessor fails to deliver the goods in conformity to the lease contract (Section 2A-509) or repudiates the lease contract...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-509
  Lessee's rights on improper delivery; rightful rejection. (1) Subject to the provisions of Section 2A-510 on default in installment lease contracts, if the goods...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-510
  Installment lease contracts; rejection and default. (1) Under an installment lease contract, a lessee may reject any delivery that is nonconforming if the nonconformity...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-511
  Merchant lessee's duties as to rightfully rejected goods. (1) Subject to any security interest of a lessee (Section 2A-508(5)), if a lessor or a...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-512
  Lessee's duties as to rightfully rejected goods. (1) Except as otherwise provided with respect to goods that threaten to decline in value speedily (Section...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-513
  Cure by lessor of improper tender or delivery; replacement. (1) If any tender or delivery by the lessor or the supplier is rejected because...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-514
  Waiver of lessee's objections. (1) In rejecting goods, a lessee's failure to state a particular defect that is ascertainable by reasonable inspection precludes the lessee...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-515
  Acceptance of goods. (1) Acceptance of goods occurs after the lessee has had a reasonable opportunity to inspect the goods and (a) the lessee...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-516
  Effect of acceptance of goods; notice of default; burden of establishing default after acceptance; notice of claim or litigation to person answerable over. (1)...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-517
  Revocation of acceptance of goods. (1) A lessee may revoke acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-518
  Cover; substitute goods. (1) After a default by a lessor under the lease contract of the type described in Section 2A-508(1), or, if agreed, after...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-519
  Lessee's damages for nondelivery, repudiation, default, and breach of warranty in regard to accepted goods. (1) Except as otherwise provided with respect to damages liquidated...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-520
  Lessee's incidental and consequential damages. (1) Incidental damages resulting from a lessor's default include expenses reasonably incurred in inspection, receipt, transportation, and care and...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-521
  Lessee's right to specific performance or replevin. (1) Specific performance may be decreed if the goods are unique or in other proper circumstances. (2)...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-522
  Lessee's right to goods on lessor's insolvency. (1) Subject to subsection (2) and even though the goods have not been shipped, a lessee who...

C. Default by Lessee

• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-523
  Lessor's remedies. (1) If a lessee wrongfully rejects or revokes acceptance of goods or fails to make a payment when due or repudiates with...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-524
  Lessor's right to identify goods to lease contract. (1) A lessor aggrieved under Section 2A-523(1) may: (a) identify to the lease contract conforming goods...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-525
  Lessor's right to possession of goods. (1) If a lessor discovers the lessee to be insolvent, the lessor may refuse to deliver the goods....
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-526
  Lessor's stoppage of delivery in transit or otherwise. (1) A lessor may stop delivery of goods in the possession of a carrier or other bailee...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-527
  Lessor's rights to dispose of goods. (1) After a default by a lessee under the lease contract of the type described in Section 2A-523(1) or...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-528
  Lessor's damages for nonacceptance, failure to pay, repudiation, or other default. (1) Except as otherwise provided with respect to damages liquidated in the lease agreement...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-529
  Lessor's action for the rent. (1) After default by the lessee under the lease contract of the type described in Section 2A-523(1) or 2A-523(3)(a)...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-530
  Lessor's incidental damages. Incidental damages to an aggrieved lessor include any commercially reasonable charges, expenses, or commissions incurred in stopping delivery, in the transportation,...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-531
  Standing to sue third parties for injury to goods. (1) If a third party so deals with goods that have been identified to a...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 2A-532
  Lessor's rights to residual interest. In addition to any other recovery permitted by this Article or other law, the lessor may recover from the...

Last modified: February 18, 2015