{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.2A-304.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.2A-304.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.2A-304.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.2A-304.html"}],"law_id":60750,"edition_id":1,"section_id":60750,"structure_id":14808,"section_number":"8.2A-304","catch_line":"Subsequent lease of goods by lessor","history":"1991, c. 536.","full_text":"1\n\nSubject to \u00a7 8.2A-303, a subsequent lessee from a lessor of goods under an existing lease contract obtains, to the extent of the leasehold interest transferred, the leasehold interest in the goods that the lessor had or had power to transfer, and except as provided in subsection (2) of this section and subsection (4) of \u00a7 8.2A-527, takes subject to the existing lease contract. A lessor with voidable title has power to transfer a good leasehold interest to a good faith subsequent lessee for value, but only to the extent set forth in the preceding sentence. If goods have been delivered under a transaction of purchase the lessor has that power even though:a\n\nThe lessor’s transferor was deceived as to the identity of the lessor;b\n\nThe delivery was in exchange for a check which is later dishonored;c\n\nIt was agreed that the transaction was to be a “cash sale”; ord\n\nThe delivery was procured through fraud punishable as larcenous under the criminal law.2\n\nA subsequent lessee in the ordinary course of business from a lessor who is a merchant dealing in goods of that kind to whom the goods were entrusted by the existing lessee of that lessor before the interest of the subsequent lessee became enforceable against that lessor obtains, to the extent of the leasehold interest transferred, all of that lessor’s and the existing lessee’s rights to the goods, and takes free of the existing lease contract.3\n\nA subsequent lessee from the lessor of goods that are subject to an existing lease contract and are covered by a certificate of title issued under a statute of this Commonwealth or of another jurisdiction takes no greater rights than those provided both by this section and by the certificate of title statute.","order_by":null,"text":{"0":{"id":222094,"text":"Subject to \u00a7 8.2A-303, a subsequent lessee from a lessor of goods under an existing lease contract obtains, to the extent of the leasehold interest transferred, the leasehold interest in the goods that the lessor had or had power to transfer, and except as provided in subsection (2) of this section and subsection (4) of \u00a7 8.2A-527, takes subject to the existing lease contract. A lessor with voidable title has power to transfer a good leasehold interest to a good faith subsequent lessee for value, but only to the extent set forth in the preceding sentence. If goods have been delivered under a transaction of purchase the lessor has that power even though:","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"next_prefix":"1a"},"1":{"id":222095,"text":"The lessor’s transferor was deceived as to the identity of the lessor;","type":"section","prefixes":["1","a"],"prefix":"a","entire_prefix":"1a","prefix_anchor":"1a","level":2,"prior_prefix":"1","next_prefix":"1b"},"2":{"id":222096,"text":"The delivery was in exchange for a check which is later dishonored;","type":"section","prefixes":["1","b"],"prefix":"b","entire_prefix":"1b","prefix_anchor":"1b","level":2,"prior_prefix":"1a","next_prefix":"1c"},"3":{"id":222097,"text":"It was agreed that the transaction was to be a “cash sale”; or","type":"section","prefixes":["1","c"],"prefix":"c","entire_prefix":"1c","prefix_anchor":"1c","level":2,"prior_prefix":"1b","next_prefix":"1d"},"4":{"id":222098,"text":"The delivery was procured through fraud punishable as larcenous under the criminal law.","type":"section","prefixes":["1","d"],"prefix":"d","entire_prefix":"1d","prefix_anchor":"1d","level":2,"prior_prefix":"1c","next_prefix":"2"},"5":{"id":222099,"text":"A subsequent lessee in the ordinary course of business from a lessor who is a merchant dealing in goods of that kind to whom the goods were entrusted by the existing lessee of that lessor before the interest of the subsequent lessee became enforceable against that lessor obtains, to the extent of the leasehold interest transferred, all of that lessor’s and the existing lessee’s rights to the goods, and takes free of the existing lease contract.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1d","next_prefix":"3"},"6":{"id":222100,"text":"A subsequent lessee from the lessor of goods that are subject to an existing lease contract and are covered by a certificate of title issued under a statute of this Commonwealth or of another jurisdiction takes no greater rights than those provided both by this section and by the certificate of title statute.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2"}},"ancestry":[{"id":14808,"edition_id":1,"name":"Effect of Lease Contract","identifier":"3","label":"part","depth":2,"order_by":1,"parent_id":12736,"metadata":{},"date_created":"2026-06-26 03:50:03","date_modified":"2026-06-26 03:50:03","permalink":{"id":282493,"object_type":"structure","relational_id":14808,"identifier":"3","token":"8.2A\/3","url":"\/8.2A\/3\/","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":68458,"structure_id":14808,"section_number":"8.2A-301","catch_line":"Enforceability of lease contract","url":"\/8.2A-301\/","token":"8.2A\/3\/8.2A-301","metadata":false},{"id":56636,"structure_id":14808,"section_number":"8.2A-302","catch_line":"Title to and possession of goods","url":"\/8.2A-302\/","token":"8.2A\/3\/8.2A-302","metadata":false},{"id":58906,"structure_id":14808,"section_number":"8.2A-303","catch_line":"Alienability of party's interest under lease contract or of lessor's residual interest in goods; delegation of performance; transfer of rights","url":"\/8.2A-303\/","token":"8.2A\/3\/8.2A-303","metadata":false},{"id":60750,"structure_id":14808,"section_number":"8.2A-304","catch_line":"Subsequent lease of goods by lessor","url":"\/8.2A-304\/","token":"8.2A\/3\/8.2A-304","metadata":false},{"id":71591,"structure_id":14808,"section_number":"8.2A-305","catch_line":"Sale or sublease of goods by lessee","url":"\/8.2A-305\/","token":"8.2A\/3\/8.2A-305","metadata":false},{"id":76970,"structure_id":14808,"section_number":"8.2A-306","catch_line":"Priority of certain liens arising by operation of law","url":"\/8.2A-306\/","token":"8.2A\/3\/8.2A-306","metadata":false},{"id":77642,"structure_id":14808,"section_number":"8.2A-307","catch_line":"Priority of liens arising by attachment or levy on, security interests in, and other claims to goods","url":"\/8.2A-307\/","token":"8.2A\/3\/8.2A-307","metadata":false},{"id":79922,"structure_id":14808,"section_number":"8.2A-308","catch_line":"Special rights of creditors","url":"\/8.2A-308\/","token":"8.2A\/3\/8.2A-308","metadata":false},{"id":76447,"structure_id":14808,"section_number":"8.2A-309","catch_line":"Lessor's and lessee's rights when goods become fixtures","url":"\/8.2A-309\/","token":"8.2A\/3\/8.2A-309","metadata":false},{"id":67646,"structure_id":14808,"section_number":"8.2A-310","catch_line":"Lessor's and lessee's rights when goods become accessions","url":"\/8.2A-310\/","token":"8.2A\/3\/8.2A-310","metadata":false},{"id":77068,"structure_id":14808,"section_number":"8.2A-311","catch_line":"Priority subject to subordination","url":"\/8.2A-311\/","token":"8.2A\/3\/8.2A-311","metadata":false}],"previous_section":{"id":58906,"structure_id":14808,"section_number":"8.2A-303","catch_line":"Alienability of party's interest under lease contract or of lessor's residual interest in goods; delegation of performance; transfer of rights","url":"\/8.2A-303\/","token":"8.2A\/3\/8.2A-303","metadata":false},"next_section":{"id":71591,"structure_id":14808,"section_number":"8.2A-305","catch_line":"Sale or sublease of goods by lessee","url":"\/8.2A-305\/","token":"8.2A\/3\/8.2A-305","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.2A-304\/","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.<\/p>","references":[{"id":59985,"section_number":"8.2A-104","catch_line":"Leases subject to other law","order_by":null,"url":"\/8.2A-104\/"},{"id":61729,"section_number":"8.2A-105","catch_line":"Territorial application of title to goods covered by certificate of title","order_by":null,"url":"\/8.2A-105\/"},{"id":54815,"section_number":"8.7-209","catch_line":"Lien of warehouseman","order_by":null,"url":"\/8.7-209\/"},{"id":61107,"section_number":"8.7-503","catch_line":"Document to goods defeated in certain cases","order_by":null,"url":"\/8.7-503\/"}],"refers_to":[{"id":58906,"section_number":"8.2A-303","catch_line":"Alienability of party's interest under lease contract or of lessor's residual interest in goods; delegation of performance; transfer of rights","order_by":null,"url":"\/8.2A-303\/"},{"id":73411,"section_number":"8.2A-527","catch_line":"Lessor's rights to dispose of goods","order_by":null,"url":"\/8.2A-527\/"}],"permalink":{"id":282507,"object_type":"law","relational_id":60750,"identifier":"8.2A-304","token":"8.2A\/3\/8.2A-304","url":"\/8.2A-304\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.2A-304\/","token":"8.2A\/3\/8.2A-304","dublin_core":{"Title":"Subsequent lease of goods by lessor","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.2A-304","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

1.<\/span> Subject to \u00a7 8.2A-303<\/a>, a subsequent lessee from a lessor of goods under an existing lease contract<\/span> obtains, to the extent of the leasehold interest transferred, the leasehold interest in the goods that the lessor had or had power to transfer, and except as provided in subsection (2) of this section and subsection (4) of \u00a7 8.2A-527<\/a>, takes subject to the existing lease contract<\/span>. A lessor with voidable title has power to transfer a good leasehold interest to a good faith subsequent lessee for value, but only to the extent set forth in the preceding sentence. If goods have been delivered under a transaction of purchase the lessor has that power even though: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

a.<\/span> The lessor’s transferor was deceived as to the identity of the lessor; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> The delivery was in exchange for a check which is later dishonored; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> It was agreed that the transaction was to be a “cash sale”; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> The delivery was procured through fraud<\/span> punishable as larcenous under the criminal law<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A subsequent lessee in the ordinary course of business from a lessor who is a merchant dealing in goods of that kind to whom the goods were entrusted by the existing lessee of that lessor before the interest of the subsequent lessee became enforceable against that lessor obtains, to the extent of the leasehold interest transferred, all of that lessor’s and the existing lessee’s rights to the goods, and takes free of the existing lease contract<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A subsequent lessee from the lessor of goods that are subject to an existing lease contract<\/span> and are covered by a certificate of title issued under a statute<\/span> of this Commonwealth or of another jurisdiction<\/span> takes no greater rights than those provided both by this section and by the certificate of title statute<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nSUBSEQUENT LEASE OF GOODS BY LESSOR (\u00a7 8.2A-304)\n\n1. Subject to \u00a7 8.2A-303, a subsequent lessee from a lessor of goods under an\nexisting lease contract obtains, to the extent of the leasehold interest\ntransferred, the leasehold interest in the goods that the lessor had or had\npower to transfer, and except as provided in subsection (2) of this section and\nsubsection (4) of \u00a7 8.2A-527, takes subject to the existing lease contract. A\nlessor with voidable title has power to transfer a good leasehold interest to a\ngood faith subsequent lessee for value, but only to the extent set forth in the\npreceding sentence. If goods have been delivered under a transaction of purchase\nthe lessor has that power even though:\n\n a. The lessor’s transferor was deceived as to the identity of the\n lessor;\n\n b. The delivery was in exchange for a check which is later dishonored;\n\n c. It was agreed that the transaction was to be a “cash sale”; or\n\n d. The delivery was procured through fraud punishable as larcenous under the\n criminal law.\n\n2. A subsequent lessee in the ordinary course of business from a lessor who is a\nmerchant dealing in goods of that kind to whom the goods were entrusted by the\nexisting lessee of that lessor before the interest of the subsequent lessee\nbecame enforceable against that lessor obtains, to the extent of the leasehold\ninterest transferred, all of that lessor’s and the existing lessee’s\nrights to the goods, and takes free of the existing lease contract.\n\n3. A subsequent lessee from the lessor of goods that are subject to an existing\nlease contract and are covered by a certificate of title issued under a statute\nof this Commonwealth or of another jurisdiction takes no greater rights than\nthose provided both by this section and by the certificate of title statute.\n\nHISTORY: 1991, c. 536.","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}}