§ 6A-2.1-201 - Statute of frauds.
SECTION 6A-2.1-201
§ 6A-2.1-201 Statute of frauds. – (1) A lease contract is not enforceable by way of action or defense unless:
(a) The total payments to be made under the lease contract,excluding payments for options to renew or buy, are less than $1,000; or
(b) There is a writing, signed by the party against whomenforcement is sought or by that party's authorized agent, sufficient toindicate that a lease contract has been made between the parties and todescribe the goods leased and the lease term.
(2) Any description of leased goods or of the lease term issufficient and satisfies subsection (1)(b), whether or not it is specific, ifit reasonably identifies what is described.
(3) A writing is not insufficient because it omits orincorrectly states a term agreed upon, but the lease contract is notenforceable under subsection (1)(b) beyond the lease term and the quantity ofgoods shown in the writing.
(4) A lease contract that does not satisfy the requirementsof subsection (1), but which is valid in other respects, is enforceable:
(a) If the goods are to be specially manufactured or obtainedfor the lessee and are not suitable for lease or sale to others in the ordinarycourse of the lessor's business, and the lessor, before notice of repudiationis received and under circumstances that reasonably indicate that the goods arefor the lessee, has made either a substantial beginning of their manufacture orcommitments for their procurement;
(b) If the party against whom enforcement is sought admits inthat party's pleading, testimony or otherwise in court that a lease contractwas made, but the lease contract is not enforceable under this provision beyondthe quantity of goods admitted; or
(c) With respect to goods that have been received andaccepted by the lessee.
(5) The lease term under a lease contract referred to insubsection (4) is:
(a) If there is a writing signed by the party against whomenforcement is sought or by that party's authorized agent specifying the leaseterm, the term so specified;
(b) If the party against whom enforcement is sought admits inthat party's pleading, testimony, or otherwise in court a lease term, the termso admitted; or
(c) A reasonable lease term.