Massachusetts General Laws ch. 106 sec. 2A-407 – Irrevocable Promises: Finance Leases
Section 2A–407. (1) In the case of a finance lease that is not a consumer lease the lessee‘s promises under the lease contract become irrevocable and independent upon the lessee’s acceptance of the goods.
Terms Used In Massachusetts General Laws ch. 106 sec. 2A-407
- 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 twenty-five thousand dollars. See Massachusetts General Laws ch. 106 sec. 2A-103
- 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 Massachusetts General Laws ch. 106 sec. 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: 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 Massachusetts General Laws ch. 106 sec. 2A-103
- 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 Massachusetts General Laws ch. 106 sec. 2A-103
- Lessee: means a person who acquires the right to possession and use of goods under a lease. See Massachusetts General Laws ch. 106 sec. 2A-103
(2) A promise that has become irrevocable and independent under subsection (1):
(a) is effective and enforceable between the parties, and by or against third parties including assignees of the parties; and
(b) is not subject to cancellation, termination, modification, repudiation, excuse, or substitution without the consent of the party to whom the promise runs.
(3) This section does not affect the validity under any other law of a covenant in any lease contract making the lessee’s promises irrevocable and independent upon the lessee’s acceptance of the goods.