Under UCC 2A, which lease triggers the Statute of Frauds requirement?

Under UCC 2A, which lease triggers the Statute of Frauds requirement?

• A. Lease of an office chair for 6 months at $600
• B. Lease of a toy drone for $400
• C. Lease of a home for 2 years
• D. Lease of a truck for 15 months at $1,200

Answer: (D)

Under UCC 2A, the Statute of Frauds requires a lease of goods to be in writing if the contract is for goods and either the term exceeds one year or the total payments exceed $1,000. The truck lease fits both criteria: it’s a lease of a good (the truck), runs for 15 months (more than one year), and the total rent is $1,200 (over $1,000). That triggers the writing requirement, so the lease must be in writing to be enforceable. The office chair example is a short-term lease (under a year) and under $1,000, so it doesn’t trigger SoF. The toy drone is under $1,000, so it also doesn’t trigger. The home lease involves real property, not goods, and SoF rules for real estate leases are governed by different statutes outside UCC 2A.

Under UCC 2A, the Statute of Frauds requires a lease of goods to be in writing if the contract is for goods and either the term exceeds one year or the total payments exceed $1,000. The truck lease fits both criteria: it’s a lease of a good (the truck), runs for 15 months (more than one year), and the total rent is $1,200 (over $1,000). That triggers the writing requirement, so the lease must be in writing to be enforceable.

The office chair example is a short-term lease (under a year) and under $1,000, so it doesn’t trigger SoF. The toy drone is under $1,000, so it also doesn’t trigger. The home lease involves real property, not goods, and SoF rules for real estate leases are governed by different statutes outside UCC 2A.