Personal Property Leases in California

The California Commercial Code in Division 10, Chapter 1, deals with general provisions concerning personal property leases. Section 10101 terms Chapter 1 as the Uniform Commercial Code—Leases.

Section 10102 applies this division to any transaction, regardless of form, that creates a lease and, in the case of a hybrid lease, it applies to the extent provided here. In a hybrid lease, the specified rules apply.

Section 10103 provides definitions for the following terms: “buyer in ordinary course of business,” “cancellation,” “commercial unit,” “conforming,” “consumer lease,” “fault,” “finance lease,” “goods,” “installment lease contract,” “lease,” “lease agreement,” “lease contract,” “leasehold interest,” “lessee,” “lessee in ordinary course of business,” “lessor,” “lessor’s residual interest,” “lien,” “lot,” “merchant lessee,” “present value,” “purchase,” “sublease,” “supplier,” “supply contract,” “termination,” “hybrid lease,” “accession,” “construction mortgage,” “encumbrance,” “fixtures,” “fixture filing,” “purchase money lease,” “account,” “between merchants,” “buyer,” “chattel paper,” “consumer goods,” “document,” “entrusting,” “general intangible,” “instrument,” “merchant,” “mortgage,” “pursuant to commitment,” “receipt of goods,” “sale,” “sale on approval,” ‘sale or return,” and “seller.”

Section 10104 specifies that a lease is also subject to any applicable certificate of title statute of this state, including the provisions of the Vehicle Code that require registration of a vehicle or boat and provisions of the Health and Safety Code that require registration of a mobilehome or commercial coach, as well as consumer laws of this state.

Section 10105 provides with respect to goods covered by a certificate of title issued under a statute of this state or of another jurisdiction, compliance and the effect of compliance or noncompliance with a certificate of title statute are governed by the law of the jurisdiction issuing the certificate in general.

Section 10106 states that, if the law chosen by the parties to a consumer lease is that of a jurisdiction other than a jurisdiction in which the lessee resides at the time, then the lease agreement becomes enforceable or within 30 days thereafter, in which the goods are to be used, or in which the lease is executed by the lessee, the choice is not enforceable.

Section 10107 provides that any claim or right arising out of an alleged default or breach of warranty may be discharged in whole or in part without consideration by a waiver or renunciation in a signed record delivered by the aggrieved party.