WILLIAM DONALD SCHAEFER, Governor                            Ch. 535

DEEMS HIMSELF (OR HERSELF) INSECURE" OR IN WORD SO SIMILAR IMPORT MUST
BE CONSTRUED TO MEAN THAT HE (OR SHE) HAS POWER TO DO SO ONLY IF HE (OR
SHE) IN GOOD FAITH BELIEVES THAT THE PROSPECT OF PAYMENT OR
PERFORMANCE IS IMPAIRED.

(2) WITH RESPECT TO A CONSUMER LEASE, THE BURDEN OF ESTABLISHING
GOOD FAITH UNDER SUBSECTION (1) IS ON THE PARTY WHO EXERCISED THE
POWER; OTHERWISE THE BURDEN OF ESTABLISHING LACK OF GOOD FAITH IS ON
THE PARTY AGAINST WHOM THE POWER HAS BEEN EXERCISED.

SUBTITLE 2. FORMATION AND CONSTRUCTION OF LEASE CONTRACT

2A-201. STATUTE OF FRAUDS

(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 WRITING SIGNED BY THE PARTY AGAINST WHOM
ENFORCEMENT IS SOUGHT OR BY THAT PARTY'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 SUBSECTION (1)(B), WHETHER OR NOT IT IS SPECIFIC, IF
IT REASONABLY IDENTIFIES WHAT IS DESCRIBED.

(3)      A WRITING IS NOT INSUFFICIENT BECAUSE IT OMITS OR INCORRECTLY
STATES A TERM AGREED UPON, BUT THE LEASE CONTRACT IS NOT ENFORCEABLE
UNDER SUBSECTION (1)(B) BEYOND THE LEASE TERM AND THE QUANTITY OF
GOODS SHOWN IN THE WRITING.

(4)      A LEASE CONTRACT THAT DOES NOT SATISFY THE REQUIREMENTS OF
SUBSECTION (1), BUT WHICH IS VALID IN OTHER RESPECTS, IS ENFORCEABLE:

(A)     IF 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'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)      IF THE PARTY AGAINST WHOM ENFORCEMENT IS SOUGHT ADMITS
IN THAT PARTY'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;

(C)     WITH RESPECT TO GOODS THAT HAVE BEEN RECEIVED AND
ACCEPTED BY THE LESSEE.

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