2025 Session Last amended: 1991 session

§ 336.2A-407 — Irrevocable Promises; Finance Leases

Plain-Language Summary

In a finance lease that is not a consumer lease, the lessee's promises become irrevocable and independent when the lessee accepts the goods. This means the lessee must keep paying even if the goods are defective.

336.2A-407 IRREVOCABLE PROMISES; FINANCE LEASES.

(1) In the case of a finance lease, the lessee’s promises under the lease contract become irrevocable and independent upon the lessee’s acceptance of the goods.

(2) A promise that has become irrevocable and independent under subsection (1):

(a) is effective and enforceable between the parties, and by or against third parties including assignees of the parties; and

(b) is not subject to cancellation, termination, modification, repudiation, excuse, or substitution without the consent of the party to whom the promise runs.

(3) This section does not affect the validity under any other law of a covenant in any lease contract making the lessee’s promises irrevocable and independent upon the lessee’s acceptance of the goods.

History:

1989 c 232 art 1 s 2A-407; 1991 c 171 art 1 s 8

History: History: 1989 c 232 art 1 s 2A-407; 1991 c 171 art 1 s 8

Practical Notes

In a commercial finance lease, once you accept the equipment, you must keep paying rent even if the equipment has problems. Your warranty claims are against the supplier, not the leasing company.

Source: Minnesota Office of the Revisor of Statutes