                                 CODE OF VIRGINIA

STATUTE OF FRAUDS (§ 8.2A-201)

1. A lease contract is not enforceable by way of action or defense unless:

   a. The total payments to be made under the lease contract, excluding payments
   for options to renew or buy, are less than $1,000; or

   b. There is a record, signed by the party against whom enforcement is sought
   or by that party&#8217;s authorized agent, sufficient to indicate that a lease
   contract has been made between the parties and to describe the goods leased
   and the lease term.

2. Any description of leased goods or of the lease term is sufficient and
satisfies subdivision (1) (b) of this section, whether or not it is specific, if
it reasonably identifies what is described.

3. A record is not insufficient because it omits or incorrectly states a term
agreed upon, but the lease contract is not enforceable under subdivision (1) (b)
of this section beyond the lease term and the quantity of goods shown in the
record.

4. A lease contract that does not satisfy the requirements of subsection (1) of
this section, but which is valid in other respects, is enforceable if:

   a. The goods are to be specially manufactured or obtained for the lessee and
   are not suitable for lease or sale to others in the ordinary course of the
   lessor&#8217;s business, and the lessor, before notice of repudiation is
   received and under circumstances that reasonably indicate that the goods are
   for the lessee, has made either a substantial beginning of their manufacture
   or commitments for their procurement;

   b. The party against whom enforcement is sought admits in that party&#8217;s
   pleading, testimony or otherwise in court that a lease contract was made, but
   the lease contract is not enforceable under this provision beyond the quantity
   of goods admitted; or

   c. With respect to goods that have been received and accepted by the lessee.

5. The lease term under a lease contract referred to in subsection (4) of this
section is:

   a. If there is a record signed by the party against whom enforcement is sought
   or by that party&#8217;s authorized agent specifying the lease term, the term
   so specified;

   b. If the party against whom enforcement is sought admits in that
   party&#8217;s pleading, testimony, or otherwise in court a lease term, the
   term so admitted; or

   c. A reasonable lease term.

HISTORY: 1991, c. 536; 2024, c. 652.