SB 891, as introduced, Gaines. Commercial law: personal property leases.
Existing law, the Uniform Commercial Code-Leases, governs the various aspects of leases of personal property, including their formation, construction, effect, and performance. Existing law provides than an agreement modifying a lease contract does not need consideration in order to be binding.
This bill would make nonsubstantive changes to those provisions.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 10208 of the Commercial Code is
2amended to read:
(a) An agreement modifying a lease contractbegin delete needs noend delete
4begin insert does not needend insert consideration to be binding.
5(b) A signed lease agreement that excludes modification or
6rescission except by a signed writing may not be otherwise
7modified or rescinded, but, except as between merchants, such a
8requirement on a form supplied by a merchantbegin delete mustend deletebegin insert shallend insert be
9separately
signed by the other party.
P2 1(c) Although an attempt at modification or rescission does not
2satisfy the requirements of subdivision (b), it may operate as a
3waiver.
4(d) A party who has made a waiver affecting an executory
5portion of a lease contract may retract the waiver by reasonable
6notification received by the other party that strict performance will
7be required of any term waived, unless the retraction would be
8unjust in view of a material change of position in reliance on the
9waiver.
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