70A-2a-201 - Statute of frauds.
70A-2a-201. Statute of frauds.
(1) A lease contract is not enforceable by way of action or defense unless:
(a) in a lease contract that is not a consumer lease, the total payments to be made underthe 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 whom enforcement is sought or by thatparty's authorized agent, sufficient to indicate that a lease contract has been made between theparties and to describe the goods leased and the lease term.
(2) Any description of leased goods or of the lease term is sufficient and satisfiesSubsection (1)(b), whether or not it is specific, if it reasonably identifies what is described.
(3) A writing is not insufficient because it omits or incorrectly states a term agreed upon,but the lease contract is not enforceable under Subsection (1)(b) beyond the lease term and thequantity of goods shown in the writing.
(4) A lease contract that does not satisfy the requirements of Subsection (1), but which isvalid in other respects, is enforceable:
(a) if the goods are to be specially manufactured or obtained for the lessee and are notsuitable 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 thegoods are for 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 in that party's pleading,testimony, or otherwise in court that a lease contract was made, but the lease contract is notenforceable under this provision beyond the quantity of goods admitted; or
(c) with respect to goods that have been received and accepted by the lessee.
(5) The lease term under a lease contract referred to in Subsection (4) is enforceable:
(a) if there is a writing signed by the party against whom enforcement is sought or by thatparty's authorized agent specifying the lease term, the term so specified;
(b) 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
(c) if there is a reasonable lease term.
Enacted by Chapter 197, 1990 General Session