{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.2A-103.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.2A-103.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.2A-103.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.2A-103.html"}],"law_id":86552,"edition_id":1,"section_id":86552,"structure_id":14788,"section_number":"8.2A-103","catch_line":"Definitions and index of definitions","history":"1991, c. 536; 2000, c. 1007; 2003, c. 353; 2004, c. 200; 2012, c. 155; 2024, c. 652.","full_text":"1\n\nIn this title unless the context otherwise requires:a\n\n“Buyer in ordinary course of business” means a person who in good faith and without knowledge that the sale to him or her is in violation of the ownership rights or security interest or leasehold interest of a third party in the goods, buys in ordinary course from a person in the business of selling goods of that kind but does not include a pawnbroker. “Buying” may be for cash or by exchange of other property or on secured or unsecured credit and includes acquiring goods or documents of title under a preexisting contract for sale but does not include a transfer in bulk or as security for or in total or partial satisfaction of a money debt.b\n\n“Cancellation” occurs when either party puts an end to the lease contract for default by the other party.c\n\n“Commercial unit” means such a unit of goods as 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. A commercial unit may be a single article, as a machine, or a set of articles, as a suite of furniture or a line of machinery, or a quantity, as a gross or carload, or any other unit treated in use or in the relevant market as a single whole.d\n\n“Conforming” goods or performance under a lease contract means goods or performance that are in accordance with the obligations under the lease contract.e\n\n“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.f\n\n“Fault” means wrongful act, omission, breach, or default.g\n\n“Finance lease” means a lease with respect to which:i\n\nThe lessor does not select, manufacture, or supply the goods;ii\n\nThe lessor acquires the goods or the right to possession and use of the goods in connection with the lease; andiii\n\nOne of the following occurs:A\n\nThe lessee receives a copy of the contract by which the lessor acquired the goods or the right to possession and use of the goods before signing the lease contract;B\n\nThe lessee’s approval of the contract by which the lessor acquired the goods or the right to possession and use of the goods is a condition to effectiveness of the lease contract;C\n\nThe lessee, before signing the lease contract, receives an accurate and complete statement designating the promises and warranties, and any disclaimers of warranties, limitations or modifications of remedies, or liquidated damages, including those of a third party, such as the manufacturer of the goods, provided to the lessor by the person supplying the goods in connection with or as part of the contract by which the lessor acquired the goods or the right to possession and use of the goods; orD\n\nIf the lease is not a consumer lease, the lessor, before the lessee signs the lease contract, informs the lessee in writing (a) of the identity of the person supplying the goods to the lessor, unless the lessee has selected that person and directed the lessor to acquire the goods or the right to possession and use of the goods from that person, (b) that the lessee is entitled under this title to the promises and warranties, including those of any third party, provided to the lessor by the person supplying the goods in connection with or as part of the contract by which the lessor acquired the goods or the right to possession and use of the goods, and (c) that the lessee may communicate with the person supplying the goods to the lessor and receive an accurate and complete statement of those promises and warranties, including any disclaimers and limitations of them or of remedies.h\n\n“Goods” means all things that are movable at the time of identification to the lease contract, or are fixtures (\u00a7 8.2A-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. The term also includes the unborn young of animals.h1\n\n“Hybrid lease” means a single transaction involving a lease of goods and:i\n\nthe provision of services;ii\n\na sale of other goods; oriii\n\na sale, lease, or license of property other than goods.i\n\n“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.j\n\n“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. Unless the context clearly indicates otherwise, the term includes a sublease.k\n\n“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 title. Unless the context clearly indicates otherwise, the term includes a sublease agreement.l\n\n“Lease contract” means the total legal obligation that results from the lease agreement as affected by this title and any other applicable rules of law. Unless the context clearly indicates otherwise, the term includes a sublease contract.m\n\n“Leasehold interest” means the interest of the lessor or the lessee under a lease contract.n\n\n“Lessee” means a person who acquires the right to possession and use of goods under a lease. Unless the context clearly indicates otherwise, the term includes a sublessee.o\n\n“Lessee in ordinary course of business” means a person who in good faith and without knowledge that the lease to him or her is in violation of the ownership rights or security interest or leasehold interest of a third party in the goods leases in ordinary course from a person in the business of selling or leasing goods of that kind but does not include a pawnbroker. “Leasing” may be for cash or by exchange of other property or on secured or unsecured credit and includes acquiring goods or documents of title under a preexisting lease contract but does not include a transfer in bulk or as security for or in total or partial satisfaction of a money debt.p\n\n“Lessor” means a person who transfers the right to possession and use of goods under a lease. Unless the context clearly indicates otherwise, the term includes a sublessor.q\n\n“Lessor’s residual interest” means the lessor’s interest in the goods after expiration, termination, or cancellation of the lease contract.r\n\n“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.s\n\n“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.t\n\n“Merchant lessee” means a lessee that is a merchant with respect to goods of the kind subject to the lease.u\n\n“Present value” means the amount as of a date certain of one or more sums payable in the future, discounted to the date certain. The discount is determined by the interest rate specified by the parties if the rate was not manifestly unreasonable at the time the transaction was entered into; otherwise, the discount is determined by a commercially reasonable rate that takes into account the facts and circumstances of each case at the time the transaction was entered into.v\n\n“Purchase” includes taking by sale, lease, mortgage, security interest, pledge, gift, or any other voluntary transaction creating an interest in goods.w\n\n“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.x\n\n“Supplier” means a person from whom a lessor buys or leases goods to be leased under a finance lease.y\n\n“Supply contract” means a contract under which a lessor buys or leases goods to be leased.z\n\n“Termination” occurs when either party pursuant to a power created by agreement or law puts an end to the lease contract otherwise than for default.2\n\nOther definitions applying to this title and the sections in which they appear are:\n\t\t\t“Accessions” § 8.2A-310 (1).\n\t\t\t“Construction mortgage” § 8.2A-309 (1) (d).\n\t\t\t“Encumbrance” § 8.2A-309 (1) (e).\n\t\t\t“Fixture filing” § 8.2A-309 (1) (b).\n\t\t\t“Fixtures” § 8.2A-309 (1) (a).\n\t\t\t“Purchase money lease” § 8.2A-309 (1) (c).3\n\nThe following definitions in other titles apply to this title:\n\t\t\t“Account” § 8.9A-102 (a) (2).\n\t\t\t“Between merchants” § 8.2-104 (3).\n\t\t\t“Buyer” § 8.2-103 (1) (a).\n\t\t\t“Chattel paper” § 8.9A-102 (a) (11).\n\t\t\t“Consumer goods” § 8.9A-102 (a) (23).\n\t\t\t“Document” § 8.9A-102 (a) (30).\n\t\t\t“Entrusting” § 8.2-403 (3).\n\t\t\t“General intangible” § 8.9A-102 (a) (42).\n\t\t\t“Good faith” § 8.2-103 (1) (b).\n\t\t\t“Instrument” § 8.9A-102 (a) (47).\n\t\t\t“Merchant” § 8.2-104 (1).\n\t\t\t“Mortgage” § 8.9A-102 (a) (55).\n\t\t\t“Pursuant to commitment” § 8.9A-102 (a)(69).\n\t\t\t“Receipt” § 8.2-103 (1) (c).\n\t\t\t“Sale” § 8.2-106 (1).\n\t\t\t“Sale on approval” § 8.2-326.\n\t\t\t“Sale or return” § 8.2-326.\n\t\t\t“Seller” § 8.2-103 (1) (d).4\n\nIn addition, Title 8.1A contains general definitions and principles of construction and interpretation applicable throughout this title.","order_by":null,"text":{"0":{"id":309982,"text":"In this title unless the context otherwise requires:","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"next_prefix":"1a"},"1":{"id":309983,"text":"“Buyer in ordinary course of business” means a person who in good faith and without knowledge that the sale to him or her is in violation of the ownership rights or security interest or leasehold interest of a third party in the goods, buys in ordinary course from a person in the business of selling goods of that kind but does not include a pawnbroker. “Buying” may be for cash or by exchange of other property or on secured or unsecured credit and includes acquiring goods or documents of title under a preexisting contract for sale but does not include a transfer in bulk or as security for or in total or partial satisfaction of a money debt.","type":"section","prefixes":["1","a"],"prefix":"a","entire_prefix":"1a","prefix_anchor":"1a","level":2,"prior_prefix":"1","next_prefix":"1b"},"2":{"id":309984,"text":"“Cancellation” occurs when either party puts an end to the lease contract for default by the other party.","type":"section","prefixes":["1","b"],"prefix":"b","entire_prefix":"1b","prefix_anchor":"1b","level":2,"prior_prefix":"1a","next_prefix":"1c"},"3":{"id":309985,"text":"“Commercial unit” means such a unit of goods as 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. A commercial unit may be a single article, as a machine, or a set of articles, as a suite of furniture or a line of machinery, or a quantity, as a gross or carload, or any other unit treated in use or in the relevant market as a single whole.","type":"section","prefixes":["1","c"],"prefix":"c","entire_prefix":"1c","prefix_anchor":"1c","level":2,"prior_prefix":"1b","next_prefix":"1d"},"4":{"id":309986,"text":"“Conforming” goods or performance under a lease contract means goods or performance that are in accordance with the obligations under the lease contract.","type":"section","prefixes":["1","d"],"prefix":"d","entire_prefix":"1d","prefix_anchor":"1d","level":2,"prior_prefix":"1c","next_prefix":"1e"},"5":{"id":309987,"text":"“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.","type":"section","prefixes":["1","e"],"prefix":"e","entire_prefix":"1e","prefix_anchor":"1e","level":2,"prior_prefix":"1d","next_prefix":"1f"},"6":{"id":309988,"text":"“Fault” means wrongful act, omission, breach, or default.","type":"section","prefixes":["1","f"],"prefix":"f","entire_prefix":"1f","prefix_anchor":"1f","level":2,"prior_prefix":"1e","next_prefix":"1g"},"7":{"id":309989,"text":"“Finance lease” means a lease with respect to which:","type":"section","prefixes":["1","g"],"prefix":"g","entire_prefix":"1g","prefix_anchor":"1g","level":2,"prior_prefix":"1f","next_prefix":"1i"},"8":{"id":309990,"text":"The lessor does not select, manufacture, or supply the goods;","type":"section","prefixes":["1","i"],"prefix":"i","entire_prefix":"1i","prefix_anchor":"1i","level":2,"prior_prefix":"1g","next_prefix":"1iii"},"9":{"id":309991,"text":"The lessor acquires the goods or the right to possession and use of the goods in connection with the lease; and","type":"section","prefixes":["1","i","ii"],"prefix":"ii","entire_prefix":"1iii","prefix_anchor":"1iii","level":3,"prior_prefix":"1i","next_prefix":"1iiii"},"10":{"id":309992,"text":"One of the following occurs:","type":"section","prefixes":["1","i","iii"],"prefix":"iii","entire_prefix":"1iiii","prefix_anchor":"1iiii","level":3,"prior_prefix":"1iii","next_prefix":"1A"},"11":{"id":309993,"text":"The lessee receives a copy of the contract by which the lessor acquired the goods or the right to possession and use of the goods before signing the lease contract;","type":"section","prefixes":["1","A"],"prefix":"A","entire_prefix":"1A","prefix_anchor":"1A","level":2,"prior_prefix":"1iiii","next_prefix":"1B"},"12":{"id":309994,"text":"The lessee’s approval of the contract by which the lessor acquired the goods or the right to possession and use of the goods is a condition to effectiveness of the lease contract;","type":"section","prefixes":["1","B"],"prefix":"B","entire_prefix":"1B","prefix_anchor":"1B","level":2,"prior_prefix":"1A","next_prefix":"1C"},"13":{"id":309995,"text":"The lessee, before signing the lease contract, receives an accurate and complete statement designating the promises and warranties, and any disclaimers of warranties, limitations or modifications of remedies, or liquidated damages, including those of a third party, such as the manufacturer of the goods, provided to the lessor by the person supplying the goods in connection with or as part of the contract by which the lessor acquired the goods or the right to possession and use of the goods; or","type":"section","prefixes":["1","C"],"prefix":"C","entire_prefix":"1C","prefix_anchor":"1C","level":2,"prior_prefix":"1B","next_prefix":"1D"},"14":{"id":309996,"text":"If the lease is not a consumer lease, the lessor, before the lessee signs the lease contract, informs the lessee in writing (a) of the identity of the person supplying the goods to the lessor, unless the lessee has selected that person and directed the lessor to acquire the goods or the right to possession and use of the goods from that person, (b) that the lessee is entitled under this title to the promises and warranties, including those of any third party, provided to the lessor by the person supplying the goods in connection with or as part of the contract by which the lessor acquired the goods or the right to possession and use of the goods, and (c) that the lessee may communicate with the person supplying the goods to the lessor and receive an accurate and complete statement of those promises and warranties, including any disclaimers and limitations of them or of remedies.","type":"section","prefixes":["1","D"],"prefix":"D","entire_prefix":"1D","prefix_anchor":"1D","level":2,"prior_prefix":"1C","next_prefix":"1h"},"15":{"id":309997,"text":"“Goods” means all things that are movable at the time of identification to the lease contract, or are fixtures (\u00a7 8.2A-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. The term also includes the unborn young of animals.","type":"section","prefixes":["1","h"],"prefix":"h","entire_prefix":"1h","prefix_anchor":"1h","level":2,"prior_prefix":"1D","next_prefix":"1hh1"},"16":{"id":309998,"text":"“Hybrid lease” means a single transaction involving a lease of goods and:","type":"section","prefixes":["1","h","h1"],"prefix":"h1","entire_prefix":"1hh1","prefix_anchor":"1hh1","level":3,"prior_prefix":"1h","next_prefix":"1i"},"17":{"id":309999,"text":"the provision of services;","type":"section","prefixes":["1","i"],"prefix":"i","entire_prefix":"1i","prefix_anchor":"1i","level":2,"prior_prefix":"1hh1","next_prefix":"1iii"},"18":{"id":310000,"text":"a sale of other goods; or","type":"section","prefixes":["1","i","ii"],"prefix":"ii","entire_prefix":"1iii","prefix_anchor":"1iii","level":3,"prior_prefix":"1i","next_prefix":"1iiii"},"19":{"id":310001,"text":"a sale, lease, or license of property other than goods.","type":"section","prefixes":["1","i","iii"],"prefix":"iii","entire_prefix":"1iiii","prefix_anchor":"1iiii","level":3,"prior_prefix":"1iii","next_prefix":"1i"},"20":{"id":310002,"text":"“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.","type":"section","prefixes":["1","i"],"prefix":"i","entire_prefix":"1i","prefix_anchor":"1i","level":2,"prior_prefix":"1iiii","next_prefix":"1j"},"21":{"id":310003,"text":"“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. Unless the context clearly indicates otherwise, the term includes a sublease.","type":"section","prefixes":["1","j"],"prefix":"j","entire_prefix":"1j","prefix_anchor":"1j","level":2,"prior_prefix":"1i","next_prefix":"1k"},"22":{"id":310004,"text":"“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 title. Unless the context clearly indicates otherwise, the term includes a sublease agreement.","type":"section","prefixes":["1","k"],"prefix":"k","entire_prefix":"1k","prefix_anchor":"1k","level":2,"prior_prefix":"1j","next_prefix":"1l"},"23":{"id":310005,"text":"“Lease contract” means the total legal obligation that results from the lease agreement as affected by this title and any other applicable rules of law. Unless the context clearly indicates otherwise, the term includes a sublease contract.","type":"section","prefixes":["1","l"],"prefix":"l","entire_prefix":"1l","prefix_anchor":"1l","level":2,"prior_prefix":"1k","next_prefix":"1m"},"24":{"id":310006,"text":"“Leasehold interest” means the interest of the lessor or the lessee under a lease contract.","type":"section","prefixes":["1","m"],"prefix":"m","entire_prefix":"1m","prefix_anchor":"1m","level":2,"prior_prefix":"1l","next_prefix":"1n"},"25":{"id":310007,"text":"“Lessee” means a person who acquires the right to possession and use of goods under a lease. Unless the context clearly indicates otherwise, the term includes a sublessee.","type":"section","prefixes":["1","n"],"prefix":"n","entire_prefix":"1n","prefix_anchor":"1n","level":2,"prior_prefix":"1m","next_prefix":"1o"},"26":{"id":310008,"text":"“Lessee in ordinary course of business” means a person who in good faith and without knowledge that the lease to him or her is in violation of the ownership rights or security interest or leasehold interest of a third party in the goods leases in ordinary course from a person in the business of selling or leasing goods of that kind but does not include a pawnbroker. “Leasing” may be for cash or by exchange of other property or on secured or unsecured credit and includes acquiring goods or documents of title under a preexisting lease contract but does not include a transfer in bulk or as security for or in total or partial satisfaction of a money debt.","type":"section","prefixes":["1","o"],"prefix":"o","entire_prefix":"1o","prefix_anchor":"1o","level":2,"prior_prefix":"1n","next_prefix":"1p"},"27":{"id":310009,"text":"“Lessor” means a person who transfers the right to possession and use of goods under a lease. Unless the context clearly indicates otherwise, the term includes a sublessor.","type":"section","prefixes":["1","p"],"prefix":"p","entire_prefix":"1p","prefix_anchor":"1p","level":2,"prior_prefix":"1o","next_prefix":"1q"},"28":{"id":310010,"text":"“Lessor’s residual interest” means the lessor’s interest in the goods after expiration, termination, or cancellation of the lease contract.","type":"section","prefixes":["1","q"],"prefix":"q","entire_prefix":"1q","prefix_anchor":"1q","level":2,"prior_prefix":"1p","next_prefix":"1r"},"29":{"id":310011,"text":"“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.","type":"section","prefixes":["1","r"],"prefix":"r","entire_prefix":"1r","prefix_anchor":"1r","level":2,"prior_prefix":"1q","next_prefix":"1s"},"30":{"id":310012,"text":"“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.","type":"section","prefixes":["1","s"],"prefix":"s","entire_prefix":"1s","prefix_anchor":"1s","level":2,"prior_prefix":"1r","next_prefix":"1t"},"31":{"id":310013,"text":"“Merchant lessee” means a lessee that is a merchant with respect to goods of the kind subject to the lease.","type":"section","prefixes":["1","t"],"prefix":"t","entire_prefix":"1t","prefix_anchor":"1t","level":2,"prior_prefix":"1s","next_prefix":"1u"},"32":{"id":310014,"text":"“Present value” means the amount as of a date certain of one or more sums payable in the future, discounted to the date certain. The discount is determined by the interest rate specified by the parties if the rate was not manifestly unreasonable at the time the transaction was entered into; otherwise, the discount is determined by a commercially reasonable rate that takes into account the facts and circumstances of each case at the time the transaction was entered into.","type":"section","prefixes":["1","u"],"prefix":"u","entire_prefix":"1u","prefix_anchor":"1u","level":2,"prior_prefix":"1t","next_prefix":"1v"},"33":{"id":310015,"text":"“Purchase” includes taking by sale, lease, mortgage, security interest, pledge, gift, or any other voluntary transaction creating an interest in goods.","type":"section","prefixes":["1","v"],"prefix":"v","entire_prefix":"1v","prefix_anchor":"1v","level":2,"prior_prefix":"1u","next_prefix":"1w"},"34":{"id":310016,"text":"“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.","type":"section","prefixes":["1","w"],"prefix":"w","entire_prefix":"1w","prefix_anchor":"1w","level":2,"prior_prefix":"1v","next_prefix":"1x"},"35":{"id":310017,"text":"“Supplier” means a person from whom a lessor buys or leases goods to be leased under a finance lease.","type":"section","prefixes":["1","x"],"prefix":"x","entire_prefix":"1x","prefix_anchor":"1x","level":2,"prior_prefix":"1w","next_prefix":"1y"},"36":{"id":310018,"text":"“Supply contract” means a contract under which a lessor buys or leases goods to be leased.","type":"section","prefixes":["1","y"],"prefix":"y","entire_prefix":"1y","prefix_anchor":"1y","level":2,"prior_prefix":"1x","next_prefix":"1z"},"37":{"id":310019,"text":"“Termination” occurs when either party pursuant to a power created by agreement or law puts an end to the lease contract otherwise than for default.","type":"section","prefixes":["1","z"],"prefix":"z","entire_prefix":"1z","prefix_anchor":"1z","level":2,"prior_prefix":"1y","next_prefix":"2"},"38":{"id":310020,"text":"Other definitions applying to this title and the sections in which they appear are:\n\t\t\t“Accessions” § 8.2A-310 (1).\n\t\t\t“Construction mortgage” § 8.2A-309 (1) (d).\n\t\t\t“Encumbrance” § 8.2A-309 (1) (e).\n\t\t\t“Fixture filing” § 8.2A-309 (1) (b).\n\t\t\t“Fixtures” § 8.2A-309 (1) (a).\n\t\t\t“Purchase money lease” § 8.2A-309 (1) (c).","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1z","next_prefix":"3"},"39":{"id":310021,"text":"The following definitions in other titles apply to this title:\n\t\t\t“Account” § 8.9A-102 (a) (2).\n\t\t\t“Between merchants” § 8.2-104 (3).\n\t\t\t“Buyer” § 8.2-103 (1) (a).\n\t\t\t“Chattel paper” § 8.9A-102 (a) (11).\n\t\t\t“Consumer goods” § 8.9A-102 (a) (23).\n\t\t\t“Document” § 8.9A-102 (a) (30).\n\t\t\t“Entrusting” § 8.2-403 (3).\n\t\t\t“General intangible” § 8.9A-102 (a) (42).\n\t\t\t“Good faith” § 8.2-103 (1) (b).\n\t\t\t“Instrument” § 8.9A-102 (a) (47).\n\t\t\t“Merchant” § 8.2-104 (1).\n\t\t\t“Mortgage” § 8.9A-102 (a) (55).\n\t\t\t“Pursuant to commitment” § 8.9A-102 (a)(69).\n\t\t\t“Receipt” § 8.2-103 (1) (c).\n\t\t\t“Sale” § 8.2-106 (1).\n\t\t\t“Sale on approval” § 8.2-326.\n\t\t\t“Sale or return” § 8.2-326.\n\t\t\t“Seller” § 8.2-103 (1) (d).","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"40":{"id":310022,"text":"In addition, Title 8.1A contains general definitions and principles of construction and interpretation applicable throughout this title.","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3"}},"ancestry":[{"id":14788,"edition_id":1,"name":"General Provisions","identifier":"1","label":"part","depth":2,"order_by":1,"parent_id":12736,"metadata":{},"date_created":"2026-06-26 03:49:54","date_modified":"2026-06-26 03:49:54","permalink":{"id":282369,"object_type":"structure","relational_id":14788,"identifier":"1","token":"8.2A\/1","url":"\/8.2A\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12736,"edition_id":1,"name":"Commercial Code \u2014 Leases","identifier":"8.2A","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:50","date_modified":"2026-06-26 03:43:50","permalink":{"id":282367,"object_type":"structure","relational_id":12736,"identifier":"8.2A","token":"8.2A","url":"\/8.2A\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":58721,"structure_id":14788,"section_number":"8.2A-101","catch_line":"Short title","url":"\/8.2A-101\/","token":"8.2A\/1\/8.2A-101","metadata":false},{"id":71307,"structure_id":14788,"section_number":"8.2A-102","catch_line":"Scope","url":"\/8.2A-102\/","token":"8.2A\/1\/8.2A-102","metadata":false},{"id":86552,"structure_id":14788,"section_number":"8.2A-103","catch_line":"Definitions and index of definitions","url":"\/8.2A-103\/","token":"8.2A\/1\/8.2A-103","metadata":false},{"id":59985,"structure_id":14788,"section_number":"8.2A-104","catch_line":"Leases subject to other law","url":"\/8.2A-104\/","token":"8.2A\/1\/8.2A-104","metadata":false},{"id":61729,"structure_id":14788,"section_number":"8.2A-105","catch_line":"Territorial application of title to goods covered by certificate of title","url":"\/8.2A-105\/","token":"8.2A\/1\/8.2A-105","metadata":false},{"id":59639,"structure_id":14788,"section_number":"8.2A-106","catch_line":"Limitation on power of parties to consumer lease to choose applicable law and judicial forum","url":"\/8.2A-106\/","token":"8.2A\/1\/8.2A-106","metadata":false},{"id":58479,"structure_id":14788,"section_number":"8.2A-107","catch_line":"Waiver or renunciation of claim or right after default","url":"\/8.2A-107\/","token":"8.2A\/1\/8.2A-107","metadata":false},{"id":56577,"structure_id":14788,"section_number":"8.2A-108","catch_line":"Unconscionability","url":"\/8.2A-108\/","token":"8.2A\/1\/8.2A-108","metadata":false},{"id":79400,"structure_id":14788,"section_number":"8.2A-109","catch_line":"Option to accelerate at will","url":"\/8.2A-109\/","token":"8.2A\/1\/8.2A-109","metadata":false}],"previous_section":{"id":71307,"structure_id":14788,"section_number":"8.2A-102","catch_line":"Scope","url":"\/8.2A-102\/","token":"8.2A\/1\/8.2A-102","metadata":false},"next_section":{"id":59985,"structure_id":14788,"section_number":"8.2A-104","catch_line":"Leases subject to other law","url":"\/8.2A-104\/","token":"8.2A\/1\/8.2A-104","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.2A-103\/","history_text":"

This law was first created in 1991. The record of its establishment is cataloged in chapter 536 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1991 \u201cActs\u201d aren\u2019t available online. It has been modified 5 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2000, chapter 1007<\/a>; in 2003, chapter 353<\/a>; in 2004, chapter 200<\/a>; in 2012, chapter 155<\/a>; in 2024, chapter 652<\/a>.<\/p>","references":[{"id":76938,"section_number":"29.1-733.2","catch_line":"Definitions","order_by":null,"url":"\/29.1-733.2\/"},{"id":67942,"section_number":"8.7-102","catch_line":"Definitions and index of definitions","order_by":null,"url":"\/8.7-102\/"},{"id":58431,"section_number":"8.9A-102","catch_line":"Definitions and index of definitions","order_by":null,"url":"\/8.9A-102\/"}],"refers_to":[{"id":73102,"section_number":"8.2-103","catch_line":"Definitions and index of definitions","order_by":null,"url":"\/8.2-103\/"},{"id":70757,"section_number":"8.2-104","catch_line":"Definitions: \"Merchant\"; \"financing agency\"; \"between merchants.\"","order_by":null,"url":"\/8.2-104\/"},{"id":81888,"section_number":"8.2-106","catch_line":"Definitions: \"Contract\"; \"agreement\"; \"contract for sale\"; \"sale\"; \"present sale\"; \"conforming\" to contract; \"termination\"; \"cancellation\"; \"hybrid transaction.\"","order_by":null,"url":"\/8.2-106\/"},{"id":65818,"section_number":"8.2-326","catch_line":"Sale on approval and sale or return; rights of creditors","order_by":null,"url":"\/8.2-326\/"},{"id":72662,"section_number":"8.2-403","catch_line":"Power to transfer; good faith purchase of goods; \"entrusting.\"","order_by":null,"url":"\/8.2-403\/"},{"id":76447,"section_number":"8.2A-309","catch_line":"Lessor's and lessee's rights when goods become fixtures","order_by":null,"url":"\/8.2A-309\/"},{"id":67646,"section_number":"8.2A-310","catch_line":"Lessor's and lessee's rights when goods become accessions","order_by":null,"url":"\/8.2A-310\/"},{"id":58431,"section_number":"8.9A-102","catch_line":"Definitions and index of definitions","order_by":null,"url":"\/8.9A-102\/"}],"permalink":{"id":282379,"object_type":"law","relational_id":86552,"identifier":"8.2A-103","token":"8.2A\/1\/8.2A-103","url":"\/8.2A-103\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.2A-103\/","token":"8.2A\/1\/8.2A-103","dublin_core":{"Title":"Definitions and index of definitions","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.2A-103","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

1.<\/span> In this title unless the context otherwise requires: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

a.<\/span> “Buyer in ordinary course of business<\/span>” means a person who in good faith and without knowledge that the sale to him or her is in violation of the ownership rights or security interest or leasehold interest<\/span> of a third party<\/span> in the goods<\/span>, buys in ordinary course from a person in the business of selling goods<\/span> of that kind but does not include a pawnbroker. “Buying<\/span>” may be for cash or by exchange of other property or on secured or unsecured credit and includes acquiring goods<\/span> or documents of title under a preexisting contract<\/span> for sale but does not include a transfer in bulk or as security for or in total or partial satisfaction of a money debt. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> “Cancellation” occurs when either party<\/span> puts an end to the lease contract<\/span> for default<\/span> by the other party<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> “Commercial unit<\/span>” means such a unit of goods<\/span> as 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. A commercial unit<\/span> may be a single article, as a machine, or a set of articles, as a suite of furniture or a line of machinery, or a quantity, as a gross or carload, or any other unit treated in use or in the relevant market as a single whole. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> “Conforming<\/span>” goods<\/span> or performance under a lease contract<\/span> means goods<\/span> or performance that are in accordance with the obligations under the lease contract<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

e.<\/span> “Consumer lease<\/span>” means a lease that a lessor<\/span> regularly engaged in the business of leasing<\/span> or selling makes to a lessee<\/span> who is an individual and who takes under the lease primarily for a personal, family, or household purpose. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

f.<\/span> “Fault<\/span>” means wrongful act, omission, breach, or default<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

g.<\/span> “Finance lease<\/span>” means a lease with respect to which: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

i.<\/span> The lessor<\/span> does not select, manufacture, or supply the goods<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

ii.<\/span> The lessor<\/span> acquires the goods<\/span> or the right to possession<\/span> and use of the goods<\/span> in connection with the lease; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

iii.<\/span> One of the following occurs: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

A.<\/span> The lessee<\/span> receives a copy of the contract by which the lessor<\/span> acquired the goods<\/span> or the right to possession<\/span> and use of the goods<\/span> before signing the lease contract<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The lessee<\/span>’s approval of the contract by which the lessor<\/span> acquired the goods<\/span> or the right to possession<\/span> and use of the goods<\/span> is a condition to effectiveness of the lease contract<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The lessee<\/span>, before signing the lease contract<\/span>, receives an accurate and complete statement designating the promises and warranties, and any disclaimers of warranties, limitations or modifications of remedies, or liquidated damages<\/span>, including those of a third party<\/span>, such as the manufacturer of the goods<\/span>, provided to the lessor<\/span> by the person supplying the goods<\/span> in connection with or as part of the contract by which the lessor<\/span> acquired the goods<\/span> or the right to possession<\/span> and use of the goods<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> If the lease is not a consumer lease<\/span>, the lessor<\/span>, before the lessee<\/span> signs the lease contract<\/span>, informs the lessee<\/span> in writing (a) of the identity of the person supplying the goods<\/span> to the lessor<\/span>, unless the lessee<\/span> has selected that person and directed the lessor<\/span> to acquire the goods<\/span> or the right to possession<\/span> and use of the goods<\/span> from that person, (b) that the lessee<\/span> is entitled under this title to the promises and warranties, including those of any third party<\/span>, provided to the lessor<\/span> by the person supplying the goods<\/span> in connection with or as part of the contract by which the lessor<\/span> acquired the goods<\/span> or the right to possession<\/span> and use of the goods<\/span>, and (c) that the lessee<\/span> may communicate with the person supplying the goods<\/span> to the lessor<\/span> and receive an accurate and complete statement of those promises and warranties, including any disclaimers and limitations of them or of remedies. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

h.<\/span> “Goods<\/span>” means all things that are movable at the time of identification to the lease contract<\/span>, or are fixtures (\u00a7 8.2A-309<\/a>), 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. The term also includes the unborn young of animals. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

h1.<\/span> “Hybrid lease<\/span>” means a single transaction involving a lease of goods<\/span> and: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

i.<\/span> the provision of services; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

ii.<\/span> a sale of other goods<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

iii.<\/span> a sale, lease, or license of property other than goods<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

i.<\/span> “Installment lease contract<\/span>” means a lease contract that authorizes or requires the delivery of goods<\/span> in separate lots<\/span> to be separately accepted, even though the lease contract contains a clause “each delivery is a separate lease<\/span>” or its equivalent. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

j.<\/span> “Lease” means a transfer of the right to possession<\/span> and use of goods<\/span> 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. Unless the context clearly indicates otherwise, the term includes a sublease<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

k.<\/span> “Lease agreement<\/span>” means the bargain, with respect to the lease, of the lessor<\/span> and the lessee<\/span> in fact<\/span> 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 title. Unless the context clearly indicates otherwise, the term includes a sublease<\/span> agreement. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

l.<\/span> “Lease contract” means the total legal obligation that results from the lease agreement<\/span> as affected by this title and any other applicable rules of law<\/span>. Unless the context clearly indicates otherwise, the term includes a sublease<\/span> contract. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

m.<\/span> “Leasehold interest<\/span>” means the interest of the lessor<\/span> or the lessee<\/span> under a lease contract. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

n.<\/span> “Lessee<\/span>” means a person who acquires the right to possession<\/span> and use of goods<\/span> under a lease. Unless the context clearly indicates otherwise, the term includes a sublessee. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

o.<\/span> “Lessee in ordinary course of business<\/span>” means a person who in good faith and without knowledge that the lease to him or her is in violation of the ownership rights or security interest or leasehold interest<\/span> of a third party<\/span> in the goods<\/span> leases<\/span> in ordinary course from a person in the business of selling or leasing<\/span> goods<\/span> of that kind but does not include a pawnbroker. “Leasing<\/span>” may be for cash or by exchange of other property or on secured or unsecured credit and includes acquiring goods<\/span> or documents of title under a preexisting lease contract but does not include a transfer in bulk or as security for or in total or partial satisfaction of a money debt. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

p.<\/span> “Lessor<\/span>” means a person who transfers the right to possession<\/span> and use of goods<\/span> under a lease. Unless the context clearly indicates otherwise, the term includes a sublessor. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

q.<\/span> “Lessor<\/span>’s residual interest” means the lessor<\/span>’s interest in the goods<\/span> after expiration, termination, or cancellation of the lease contract. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

r.<\/span> “Lien<\/span>” means a charge against or interest in goods<\/span> to secure payment of a debt or performance of an obligation, but the term does not include a security interest. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

s.<\/span> “Lot<\/span>” 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. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

t.<\/span> “Merchant lessee<\/span>” means a lessee that is a merchant with respect to goods<\/span> of the kind subject to the lease. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

u.<\/span> “Present value<\/span>” means the amount as of a date certain of one or more sums payable in the future, discounted to the date certain. The discount is determined by the interest rate specified by the parties if the rate was not manifestly unreasonable at the time the transaction was entered into; otherwise, the discount is determined by a commercially reasonable rate that takes into account the facts<\/span> and circumstances of each case at the time the transaction was entered into. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

v.<\/span> “Purchase<\/span>” includes taking by sale, lease, mortgage, security interest, pledge, gift, or any other voluntary transaction creating an interest in goods<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

w.<\/span> “Sublease<\/span>” means a lease of goods<\/span> the right to possession<\/span> and use of which was acquired by the lessor<\/span> as a lessee under an existing lease. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

x.<\/span> “Supplier<\/span>” means a person from whom a lessor<\/span> buys or leases<\/span> goods<\/span> to be leased under a finance lease<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

y.<\/span> “Supply contract<\/span>” means a contract under which a lessor<\/span> buys or leases<\/span> goods<\/span> to be leased. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

z.<\/span> “Termination” occurs when either party<\/span> pursuant to a power created by agreement or law<\/span> puts an end to the lease contract otherwise than for default<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Other definitions applying to this title and the sections in which they appear are:\n\t\t\t“Accessions” § 8.2A-310<\/a> (1).\n\t\t\t“Construction mortgage” § 8.2A-309<\/a> (1) (d).\n\t\t\t“Encumbrance” § 8.2A-309<\/a> (1) (e).\n\t\t\t“Fixture filing” § 8.2A-309<\/a> (1) (b).\n\t\t\t“Fixtures” § 8.2A-309<\/a> (1) (a).\n\t\t\t“Purchase<\/span> money lease” § 8.2A-309<\/a> (1) (c). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The following definitions in other titles apply to this title:\n\t\t\t“Account” § 8.9A-102<\/a> (a) (2).\n\t\t\t“Between merchants” § 8.2-104<\/a> (3).\n\t\t\t“Buyer” § 8.2-103<\/a> (1) (a).\n\t\t\t“Chattel paper” § 8.9A-102<\/a> (a) (11).\n\t\t\t“Consumer goods<\/span>” § 8.9A-102<\/a> (a) (23).\n\t\t\t“Document” § 8.9A-102<\/a> (a) (30).\n\t\t\t“Entrusting” § 8.2-403<\/a> (3).\n\t\t\t“General intangible” § 8.9A-102<\/a> (a) (42).\n\t\t\t“Good faith” § 8.2-103<\/a> (1) (b).\n\t\t\t“Instrument” § 8.9A-102<\/a> (a) (47).\n\t\t\t“Merchant” § 8.2-104<\/a> (1).\n\t\t\t“Mortgage” § 8.9A-102<\/a> (a) (55).\n\t\t\t“Pursuant to commitment” § 8.9A-102<\/a> (a)(69).\n\t\t\t“Receipt” § 8.2-103<\/a> (1) (c).\n\t\t\t“Sale” § 8.2-106<\/a> (1).\n\t\t\t“Sale on approval” § 8.2-326<\/a>.\n\t\t\t“Sale or return” § 8.2-326<\/a>.\n\t\t\t“Seller” § 8.2-103<\/a> (1) (d). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> In addition, Title 8.1A contains general definitions and principles of construction and interpretation applicable throughout this title. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDEFINITIONS AND INDEX OF DEFINITIONS (\u00a7 8.2A-103)\n\n1. In this title unless the context otherwise requires:\n\n a. “Buyer in ordinary course of business” means a person who in\n good faith and without knowledge that the sale to him or her is in violation\n of the ownership rights or security interest or leasehold interest of a third\n party in the goods, buys in ordinary course from a person in the business of\n selling goods of that kind but does not include a pawnbroker.\n “Buying” may be for cash or by exchange of other property or on\n secured or unsecured credit and includes acquiring goods or documents of title\n under a preexisting contract for sale but does not include a transfer in bulk\n or as security for or in total or partial satisfaction of a money debt.\n\n b. “Cancellation” occurs when either party puts an end to the\n lease contract for default by the other party.\n\n c. “Commercial unit” means such a unit of goods as by commercial\n usage is a single whole for purposes of lease and division of which materially\n impairs its character or value on the market or in use. A commercial unit may\n be a single article, as a machine, or a set of articles, as a suite of\n furniture or a line of machinery, or a quantity, as a gross or carload, or any\n other unit treated in use or in the relevant market as a single whole.\n\n d. “Conforming” goods or performance under a lease contract means\n goods or performance that are in accordance with the obligations under the\n lease contract.\n\n e. “Consumer lease” means a lease that a lessor regularly engaged\n in the business of leasing or selling makes to a lessee who is an individual\n and who takes under the lease primarily for a personal, family, or household\n purpose.\n\n f. “Fault” means wrongful act, omission, breach, or default.\n\n g. “Finance lease” means a lease with respect to which:\n\n i. The lessor does not select, manufacture, or supply the goods;\n\n ii. The lessor acquires the goods or the right to possession and use of the\n goods in connection with the lease; and\n\n iii. One of the following occurs:\n\n A. The lessee receives a copy of the contract by which the lessor acquired the\n goods or the right to possession and use of the goods before signing the lease\n contract;\n\n B. The lessee’s approval of the contract by which the lessor acquired\n the goods or the right to possession and use of the goods is a condition to\n effectiveness of the lease contract;\n\n C. The lessee, before signing the lease contract, receives an accurate and\n complete statement designating the promises and warranties, and any\n disclaimers of warranties, limitations or modifications of remedies, or\n liquidated damages, including those of a third party, such as the manufacturer\n of the goods, provided to the lessor by the person supplying the goods in\n connection with or as part of the contract by which the lessor acquired the\n goods or the right to possession and use of the goods; or\n\n D. If the lease is not a consumer lease, the lessor, before the lessee signs\n the lease contract, informs the lessee in writing (a) of the identity of the\n person supplying the goods to the lessor, unless the lessee has selected that\n person and directed the lessor to acquire the goods or the right to possession\n and use of the goods from that person, (b) that the lessee is entitled under\n this title to the promises and warranties, including those of any third party,\n provided to the lessor by the person supplying the goods in connection with or\n as part of the contract by which the lessor acquired the goods or the right to\n possession and use of the goods, and (c) that the lessee may communicate with\n the person supplying the goods to the lessor and receive an accurate and\n complete statement of those promises and warranties, including any disclaimers\n and limitations of them or of remedies.\n\n h. “Goods” means all things that are movable at the time of\n identification to the lease contract, or are fixtures (\u00a7 8.2A-309), but the\n term does not include money, documents, instruments, accounts, chattel paper,\n general intangibles, or minerals or the like, including oil and gas, before\n extraction. The term also includes the unborn young of animals.\n\n h1. “Hybrid lease” means a single transaction involving a lease\n of goods and:\n\n i. the provision of services;\n\n ii. a sale of other goods; or\n\n iii. a sale, lease, or license of property other than goods.\n\n i. “Installment lease contract” means a lease contract that\n authorizes or requires the delivery of goods in separate lots to be separately\n accepted, even though the lease contract contains a clause “each\n delivery is a separate lease” or its equivalent.\n\n j. “Lease” means a transfer of the right to possession and use of\n goods for a term in return for consideration, but a sale, including a sale on\n approval or a sale or return, or retention or creation of a security interest\n is not a lease. Unless the context clearly indicates otherwise, the term\n includes a sublease.\n\n k. “Lease agreement” means the bargain, with respect to the lease,\n of the lessor and the lessee in fact as found in their language or by\n implication from other circumstances including course of dealing or usage of\n trade or course of performance as provided in this title. Unless the context\n clearly indicates otherwise, the term includes a sublease agreement.\n\n l. “Lease contract” means the total legal obligation that results\n from the lease agreement as affected by this title and any other applicable\n rules of law. Unless the context clearly indicates otherwise, the term\n includes a sublease contract.\n\n m. “Leasehold interest” means the interest of the lessor or the\n lessee under a lease contract.\n\n n. “Lessee” means a person who acquires the right to possession\n and use of goods under a lease. Unless the context clearly indicates\n otherwise, the term includes a sublessee.\n\n o. “Lessee in ordinary course of business” means a person who in\n good faith and without knowledge that the lease to him or her is in violation\n of the ownership rights or security interest or leasehold interest of a third\n party in the goods leases in ordinary course from a person in the business of\n selling or leasing goods of that kind but does not include a pawnbroker.\n “Leasing” may be for cash or by exchange of other property or on\n secured or unsecured credit and includes acquiring goods or documents of title\n under a preexisting lease contract but does not include a transfer in bulk or\n as security for or in total or partial satisfaction of a money debt.\n\n p. “Lessor” means a person who transfers the right to possession\n and use of goods under a lease. Unless the context clearly indicates\n otherwise, the term includes a sublessor.\n\n q. “Lessor’s residual interest” means the lessor’s\n interest in the goods after expiration, termination, or cancellation of the\n lease contract.\n\n r. “Lien” means a charge against or interest in goods to secure\n payment of a debt or performance of an obligation, but the term does not\n include a security interest.\n\n s. “Lot” means a parcel or a single article that is the subject\n matter of a separate lease or delivery, whether or not it is sufficient to\n perform the lease contract.\n\n t. “Merchant lessee” means a lessee that is a merchant with\n respect to goods of the kind subject to the lease.\n\n u. “Present value” means the amount as of a date certain of one or\n more sums payable in the future, discounted to the date certain. The discount\n is determined by the interest rate specified by the parties if the rate was\n not manifestly unreasonable at the time the transaction was entered into;\n otherwise, the discount is determined by a commercially reasonable rate that\n takes into account the facts and circumstances of each case at the time the\n transaction was entered into.\n\n v. “Purchase” includes taking by sale, lease, mortgage, security\n interest, pledge, gift, or any other voluntary transaction creating an\n interest in goods.\n\n w. “Sublease” means a lease of goods the right to possession and\n use of which was acquired by the lessor as a lessee under an existing lease.\n\n x. “Supplier” means a person from whom a lessor buys or leases\n goods to be leased under a finance lease.\n\n y. “Supply contract” means a contract under which a lessor buys or\n leases goods to be leased.\n\n z. “Termination” occurs when either party pursuant to a power\n created by agreement or law puts an end to the lease contract otherwise than\n for default.\n\n2. Other definitions applying to this title and the sections in which they\nappear are:\n\t\t\t“Accessions” § 8.2A-310 (1).\n\t\t\t“Construction mortgage” § 8.2A-309 (1) (d).\n\t\t\t“Encumbrance” § 8.2A-309 (1) (e).\n\t\t\t“Fixture filing” § 8.2A-309 (1) (b).\n\t\t\t“Fixtures” § 8.2A-309 (1) (a).\n\t\t\t“Purchase money lease” § 8.2A-309 (1) (c).\n\n3. The following definitions in other titles apply to this title:\n\t\t\t“Account” § 8.9A-102 (a) (2).\n\t\t\t“Between merchants” § 8.2-104 (3).\n\t\t\t“Buyer” § 8.2-103 (1) (a).\n\t\t\t“Chattel paper” § 8.9A-102 (a) (11).\n\t\t\t“Consumer goods” § 8.9A-102 (a) (23).\n\t\t\t“Document” § 8.9A-102 (a) (30).\n\t\t\t“Entrusting” § 8.2-403 (3).\n\t\t\t“General intangible” § 8.9A-102 (a) (42).\n\t\t\t“Good faith” § 8.2-103 (1) (b).\n\t\t\t“Instrument” § 8.9A-102 (a) (47).\n\t\t\t“Merchant” § 8.2-104 (1).\n\t\t\t“Mortgage” § 8.9A-102 (a) (55).\n\t\t\t“Pursuant to commitment” § 8.9A-102 (a)(69).\n\t\t\t“Receipt” § 8.2-103 (1) (c).\n\t\t\t“Sale” § 8.2-106 (1).\n\t\t\t“Sale on approval” § 8.2-326.\n\t\t\t“Sale or return” § 8.2-326.\n\t\t\t“Seller” § 8.2-103 (1) (d).\n\n4. In addition, Title 8.1A contains general definitions and principles of\nconstruction and interpretation applicable throughout this title.\n\nHISTORY: 1991, c. 536; 2000, c. 1007; 2003, c. 353; 2004, c. 200; 2012, c. 155;\n2024, c. 652.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}