Part 1 General Provisions
Part 2 Formation and Construction of Lease Contract
Part 3 Effect of Lease Contract
Part 4 Performance of Lease Contract: Repudiated, Substituted, and Excused
Part 5 Default

Terms Used In Michigan Laws > Chapter 440 > Act 174 of 1962 > Article 2A - Leases

  • Administrator: means the secretary of state or any individual designated by the secretary of state to act in his or her place. See Michigan Laws 257.1302
  • Aggrieved party: means a party entitled to resort to a remedy. See Michigan Laws 440.1201
  • Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
  • Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
  • Authority: means a regional transit authority created under this act. See Michigan Laws 124.542
  • Authority: means an authority incorporated under this act. See Michigan Laws 124.601
  • Bail: Security given for the release of a criminal defendant or witness from legal custody (usually in the form of money) to secure his/her appearance on the day and time appointed.
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Bequest: Property gifted by will.
  • Bill of lading: means a document of title evidencing the receipt of goods for shipment issued by a person engaged in the business of directly or indirectly transporting or forwarding goods. See Michigan Laws 440.1201
  • Board: means the governing body of a public authority. See Michigan Laws 124.452
  • Board: means the governing body of an authority. See Michigan Laws 124.542
  • City: means a city incorporated under the home rule city act, 1909 PA 279, MCL 117. See Michigan Laws 124.542
  • Commercial unit: means a unit of goods that by commercial usage is a single whole for purposes of lease and division of which materially impairs its character or value on the market or in use. See Michigan Laws 440.2803
  • Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
  • Concurrent resolution: A legislative measure, designated "S. Con. Res." and numbered consecutively upon introduction, generally employed to address the sentiments of both chambers, to deal with issues or matters affecting both houses, such as a concurrent budget resolution, or to create a temporary joint committee. Concurrent resolutions are not submitted to the President/Governor and thus do not have the force of law.
  • Conforming: means goods or performance under a lease contract that are in accordance with the obligations under the lease contract. See Michigan Laws 440.2803
  • Consumer: means an individual who enters into a transaction primarily for personal, family, or household purposes. See Michigan Laws 440.1201
  • Consumer lease: means a lease that a lessor regularly engaged in the business of leasing or selling makes to a lessee who is an individual and who takes under the lease primarily for a personal, family, or household purpose, if the total payments to be made under the lease contract, excluding payments for options to renew or buy, do not exceed $25,000. See Michigan Laws 440.2803
  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • County executive: means the county executive of a county or, if the county does not have an elected county executive, the chair of the county board of commissioners. See Michigan Laws 124.542
  • Creditor: includes a general creditor, a secured creditor, a lien creditor, and any representative of creditors, including an assignee for the benefit of creditors, a trustee in bankruptcy, a receiver in equity, and an executor or administrator of an insolvent debtor's or assignor's estate. See Michigan Laws 440.1201
  • Customer: means the owner or operator of a motor vehicle. See Michigan Laws 257.1302
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Delivery: means either of the following:
  (i) With respect to an electronic document of title, a voluntary transfer of control. See Michigan Laws 440.1201
  • Department: means the state transportation department. See Michigan Laws 124.542
  • Devise: To gift property by will.
  • Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
  • Dismissal: The dropping of a case by the judge without further consideration or hearing. Source:
  • Distressed vehicle: means that term as defined in section 12a of the Michigan vehicle code, 1949 PA 300, MCL 257. See Michigan Laws 257.1302
  • Embezzlement: In most states, embezzlement is defined as theft/larceny of assets (money or property) by a person in a position of trust or responsibility over those assets. Embezzlement typically occurs in the employment and corporate settings. Source: OCC
  • Emergency services: means fire protection services, emergency medical services, police protection, and any other emergency health or safety services designated in the articles of incorporation of an authority. See Michigan Laws 124.601
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • Estimate: means a written statement that itemizes as closely as possible the price for labor, by showing the labor price per hour, the number of hours required to perform the work, and the price of parts necessary for a specific repair. See Michigan Laws 257.1302
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Fault: means wrongful act, omission, breach, or default. See Michigan Laws 440.2803
  • Federal Deposit Insurance Corporation: A government corporation that insures the deposits of all national and state banks that are members of the Federal Reserve System. Source: OCC
  • Fiduciary: A trustee, executor, or administrator.
  • Finance lease: means a lease with respect to which all of the following apply:
    •   (i) The lessor does not select, manufacture, or supply the goods. See Michigan Laws 440.2803
  • Fiscal year: means the time period between October 1 of a calendar year through September 30 of the following calendar year. See Michigan Laws 124.542
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Forgery: The fraudulent signing or alteration of another's name to an instrument such as a deed, mortgage, or check. The intent of the forgery is to deceive or defraud. Source: OCC
  • Fraud: Intentional deception resulting in injury to another.
  • Freedom of Information Act: A federal law that mandates that all the records created and kept by federal agencies in the executive branch of government must be open for public inspection and copying. The only exceptions are those records that fall into one of nine exempted categories listed in the statute. Source: OCC
  • Fungible goods: means either of the following:
    •   (i) Goods of which any unit, by nature or usage of trade, is the equivalent of any other like unit. See Michigan Laws 440.1201
  • Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
  • Good faith: except as otherwise provided in article 5, means honesty in fact and the observance of reasonable commercial standards of fair dealing. See Michigan Laws 440.1201
  • Goods: means all things that are movable at the time of identification to the lease contract, or are fixtures under section 2A309, 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 Michigan Laws 440.2803
  • Governing body: means the board, council or body in which the legislative powers of a political subdivision are vested. See Michigan Laws 124.531
  • Holder: means any of the following:
    •   (i) A person in possession of a negotiable instrument that is payable either to bearer or to an identified person that is the person in possession. See Michigan Laws 440.1201
  • in writing: shall be construed to include printing, engraving, and lithographing; except that if the written signature of a person is required by law, the signature shall be the proper handwriting of the person or, if the person is unable to write, the person's proper mark, which may be, unless otherwise expressly prohibited by law, a clear and classifiable fingerprint of the person made with ink or another substance. See Michigan Laws 8.3q
  • Incorporating municipality: means a municipality that becomes part of a new authority in the manner provided in section 2, or joins an existing authority in the manner provided in section 3. See Michigan Laws 124.601
  • Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
  • Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
  • Insolvent: means any of the following:
    •   (i) Having generally ceased to pay debts in the ordinary course of business other than as a result of a bona fide dispute. See Michigan Laws 440.1201
  • Installment lease contract: means a lease contract that authorizes or requires the delivery of goods in separate lots to be separately accepted, even though the lease contract contains a clause "each delivery is a separate lease" or its equivalent. See Michigan Laws 440.2803
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Interlocal agreement: means an agreement entered into under this act. See Michigan Laws 124.502
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Late model vehicle: means that term as defined in section 24b of the Michigan vehicle code, 1949 PA 300, MCL 257. See Michigan Laws 257.1302
  • 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 Michigan Laws 440.2803
  • 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 Michigan Laws 440.2803
  • Lease contract: means the total legal obligation that results from the lease agreement as affected by this article and any other applicable rules of law. See Michigan Laws 440.2803
  • Leasehold interest: means the interest of the lessor or the lessee under a lease contract. See Michigan Laws 440.2803
  • Legacy: A gift of property made by will.
  • Lessee: means a person who acquires the right to possession and use of goods under a lease. See Michigan Laws 440.2803
  • Lessor: means a person who transfers the right to possession and use of goods under a lease. See Michigan Laws 440.2803
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Lien: means a charge against or interest in goods to secure payment of a debt or performance of an obligation, but the term does not include a security interest. See Michigan Laws 440.2803
  • Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
  • Local governmental unit: means a county, city, village, township, or charter township. See Michigan Laws 124.502
  • Local road agency: means that term as defined in section 9a of 1951 PA 51, MCL 247. See Michigan Laws 124.542
  • Lot: means a parcel or a single article that is the subject matter of a separate lease or delivery, whether or not it is sufficient to perform the lease contract. See Michigan Laws 440.2803
  • Major component part: means any of the following parts of a motor vehicle:
    •   (i) The engine. See Michigan Laws 257.1302a
  • Master mechanic: means any of the following:
    •   (i) A motor vehicle mechanic or specialty mechanic who is certified by the department under this act in all of the specific repair or service categories applicable to automobiles or light trucks described in section 10(5). See Michigan Laws 257.1302a
  • Member jurisdiction: means a city or county that appoints a member of a board under section 5. See Michigan Laws 124.542
  • Merchant lessee: means a lessee that is a merchant with respect to goods of the kind subject to the lease. See Michigan Laws 440.2803
  • Money: means a medium of exchange authorized or adopted by a domestic or foreign government. See Michigan Laws 440.1201
  • month: means a calendar month; the word "year" a calendar year; and the word "year" alone shall be equivalent to the words "year of our Lord". See Michigan Laws 8.3j
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Motor vehicle: means a vehicle that is self-propelled, a vehicle that is propelled by electric power, a motorcycle, or a trailer as those terms are defined in the Michigan vehicle code, 1949 PA 300, MCL 257. See Michigan Laws 257.1302a
  • motor vehicle repair facility: means a place of business that is required to register under this act and that, for compensation, is engaged in the business of performing, or employs individuals who perform, maintenance, diagnosis, vehicle body work, or repair service, or, beginning July 1, 2016, BAIID service, on a motor vehicle. See Michigan Laws 257.1302
  • Municipal emergency service: means an emergency service performed by a municipality, rather than by an authority. See Michigan Laws 124.601
  • Municipality: means a county, city, village, or township. See Michigan Laws 124.601
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Oversight: Committee review of the activities of a Federal agency or program.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Person: means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency, or instrumentality, public corporation, or any other legal or commercial entity. See Michigan Laws 440.1201
  • Person: means an individual, corporation, limited liability company, partnership, association, or any other legal entity. See Michigan Laws 257.1302a
  • person: may extend and be applied to bodies politic and corporate, as well as to individuals. See Michigan Laws 8.3l
  • Personal property: All property that is not real property.
  • Plaintiff: The person who files the complaint in a civil lawsuit.
  • Political subdivision: means a county, city, village, or township. See Michigan Laws 124.452
  • Political subdivision: means a city, village, other incorporated political subdivision, county, school district, community college, intermediate school district, township, charter township, special district or authority. See Michigan Laws 124.531
  • Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
  • Present value: means the amount as of a date certain of 1 or more sums payable in the future, discounted to the date certain. See Michigan Laws 440.2803
  • Property: means any real or personal property, as described in section 34c of the general property tax act, 1893 PA 206, MCL 211. See Michigan Laws 124.502
  • Prosecute: To charge someone with a crime. A prosecutor tries a criminal case on behalf of the government.
  • Province: means a province of Canada. See Michigan Laws 124.502
  • Public agency: means a political subdivision of this state or of another state of the United States or of Canada, including, but not limited to, a state government; a county, city, village, township, charter township, school district, single or multipurpose special district, or single or multipurpose public authority; a provincial government, metropolitan government, borough, or other political subdivision of Canada; an agency of the United States government; or a similar entity of any other states of the United States and of Canada. See Michigan Laws 124.502
  • Public authority: means an authority created under this act. See Michigan Laws 124.452
  • Public law: A public bill or joint resolution that has passed both chambers and been enacted into law. Public laws have general applicability nationwide.
  • Public transit region: means an area of this state consisting of a qualified region. See Michigan Laws 124.542
  • Public transportation: means the movement of individuals and goods by publicly owned bus, rapid transit vehicle, or other conveyance that provides general or special service to the public, but not including school buses or charter or sightseeing service or transportation that is used exclusively for school purposes. See Michigan Laws 124.542
  • Public transportation provider: means a public or private entity that provides public transportation services and includes a contractor providing services to a public transportation provider. See Michigan Laws 124.542
  • Public transportation system: means a system for providing public transportation in the form of light rail, rolling rapid transit, or other modes of public transportation and public transportation facilities to individuals. See Michigan Laws 124.542
  • Purchase: includes taking by sale, lease, mortgage, security interest, pledge, gift, or any other voluntary transaction creating an interest in goods. See Michigan Laws 440.2803
  • Purchaser: means a person that takes by purchase. See Michigan Laws 440.1201
  • Qualified county: means a county in this state with the largest population according to the most recent decennial census. See Michigan Laws 124.542
  • Qualified region: means a geographic area of this state that includes a qualified county and the 3 counties with the largest populations according to the most recent decennial census that are contiguous to the qualified county. See Michigan Laws 124.542
  • Quorum: The number of legislators that must be present to do business.
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • Record: means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. See Michigan Laws 440.1201
  • Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
  • Remedy: means any remedial right to which an aggrieved party is entitled with or without resort to a tribunal. See Michigan Laws 440.1201
  • Repair: means the reconditioning, adjustment, alteration, maintenance, or diagnosis of the operating condition of a motor vehicle, with or without the replacement of any component or subassembly of a motor vehicle, for compensation or under the terms of a warranty. See Michigan Laws 257.1302a
  • Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
  • Restitution: The court-ordered payment of money by the defendant to the victim for damages caused by the criminal action.
  • Revenue: means money received by the public authority as provided in section 17. See Michigan Laws 124.452
  • Right: includes remedy. See Michigan Laws 440.1201
  • Rolling rapid transit system: means bus services that may combine the technology of intelligent transportation systems, traffic signal priority, cleaner and quieter vehicles, rapid and convenient fare collection, and integration with land use policy. See Michigan Laws 124.542
  • seal: shall be construed to include any of the following:
    •   (a) The impression of the seal on the paper alone. See Michigan Laws 8.3n
  • Security interest: means an interest in personal property or fixtures which secures payment or performance of an obligation. See Michigan Laws 440.1201
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • shall not apply: means that the pertinent provision is not operative as to certain persons or things or in conjunction with a particular date or dates. See Michigan Laws 8.4c
  • Signed: includes any symbol executed or adopted by a party with present intention to adopt or accept a writing. See Michigan Laws 440.1201
  • State: means a state of the United States. See Michigan Laws 124.502
  • State: means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. See Michigan Laws 440.1201
  • state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
  • Statute: A law passed by a legislature.
  • Statute of limitations: A law that sets the time within which parties must take action to enforce their rights.
  • Sublease: means a lease of goods the right to possession and use of which was acquired by the lessor as a lessee under an existing lease. See Michigan Laws 440.2803
  • Supplier: means a person from whom a lessor buys or leases goods to be leased under a finance lease. See Michigan Laws 440.2803
  • Supply contract: means a contract under which a lessor buys or leases goods to be leased. See Michigan Laws 440.2803
  • Term: means a portion of an agreement that relates to a particular matter. See Michigan Laws 440.1201
  • Testimony: Evidence presented orally by witnesses during trials or before grand juries.
  • third party: means a person that has engaged in a transaction or made an agreement subject to this act. See Michigan Laws 440.1201
  • Trustee: A person or institution holding and administering property in trust.
  • Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
  • United States: shall be construed to include the district and territories. See Michigan Laws 8.3o
  • Vehicle body work: means the business or activity of repairing physical damage to a motor vehicle by repairing, mending, straightening, or replacing a major component part, except for the engine or transmission. See Michigan Laws 257.1302a
  • Warranty: means a guarantee given by a motor vehicle repair facility, in writing or by implication, of the merchantability, of the integrity of the subject of a contract, or of the responsibility of the person that makes the warranty for the replacement or repair of defective parts or services, or both, assuring performance, product, or conditions as promised or declared by the person that makes the warranty. See Michigan Laws 257.1302a
  • writing: includes printing, typewriting, or any other intentional reduction to tangible form. See Michigan Laws 440.1201