(1) Except in a finance lease, a warranty that the goods will be merchantable is implied in a lease contract if the lessor is a merchant with respect to goods of that kind.
     (2) Goods to be merchantable must be at least such as:

Terms Used In Illinois Compiled Statutes 810 ILCS 5/2A-212

  • Contract: A legal written agreement that becomes binding when signed.
  • Goods: means all things that are movable at the
    
time of identification to the lease contract, or are fixtures (Section 2A-309), but the term does not include money, documents, instruments, accounts, chattel paper, general intangibles, or minerals or the like, including oil and gas, before extraction. See Illinois Compiled Statutes 810 ILCS 5/2A-103
  • Lease: means a transfer of the right to
    •     
    possession and use of goods for a term in return for consideration, but a sale, including a sale on approval or a sale or return, or retention or creation of a security interest is not a lease. See Illinois Compiled Statutes 810 ILCS 5/2A-103
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Lease agreement: means the bargain, with respect
    •     
    to the lease, of the lessor and the lessee in fact as found in their language or by implication from other circumstances including course of dealing or usage of trade or course of performance as provided in this Article. See Illinois Compiled Statutes 810 ILCS 5/2A-103
  • Lessor: means a person who transfers the right
    •     
    to possession and use of goods under a lease. See Illinois Compiled Statutes 810 ILCS 5/2A-103

            (a) pass without objection in the trade under the
        
    description in the lease agreement;
            (b) in the case of fungible goods, are of fair
        
    average quality within the description;
            (c) are fit for the ordinary purposes for which goods
        
    of that type are used;
            (d) run, within the variation permitted by the lease
        
    agreement, of even kind, quality, and quantity within each unit and among all units involved;
            (e) are adequately contained, packaged, and labeled
        
    as the lease agreement may require; and
            (f) conform to any promises or affirmations of fact
        
    made on the container or label.
        (3) Other implied warranties may arise from course of dealing or usage of trade.
      Previous section
    Next section  
     Part 2 Contents

    LawServer is used by

    New York Times, IRS, USDA, UCLA, DOT