BILL NUMBER: SB 891	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Gaines

                        JANUARY 20, 2016

   An act to amend Section 10208 of the Commercial Code, relating to
leases.



	LEGISLATIVE COUNSEL'S DIGEST


   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 1.  Section 10208 of the Commercial Code is amended to
read:
   10208.  (a) An agreement modifying a lease contract  needs
no   does not need  consideration to be binding.
   (b) A signed lease agreement that excludes modification or
rescission except by a signed writing may not be otherwise modified
or rescinded, but, except as between merchants, such a requirement on
a form supplied by a merchant  must   shall
 be separately signed by the other party.
   (c) Although an attempt at modification or rescission does not
satisfy the requirements of subdivision (b), it may operate as a
waiver.
   (d) A party who has made a waiver affecting an executory portion
of a lease contract may retract the waiver by reasonable notification
received by the other party that strict performance will be required
of any term waived, unless the retraction would be unjust in view of
a material change of position in reliance on the waiver.