How is a lease defined under the UCC?

A lease is defined under the UCC (Uniform Commercial Code) as a transfer of the right to use goods for a term. This definition is rooted in the UCC's purpose of regulating personal property transactions, particularly those involving goods. It emphasizes the essence of a lease as a contractual arrangement that grants one party the right to use certain goods owned by another party for a specified period, in exchange for payment, usually identified as lease payments.

This definition highlights several key characteristics of leases under the UCC:

1. Transfer of Use Rights: The lessee (the party receiving the right) is granted the ability to use the goods without taking ownership. This allows for flexibility in utilizing assets without the upfront costs of purchasing them.

2. Goods: The lease pertains specifically to tangible personal property, commonly referred to as "goods," which can include items like vehicles, machinery, and equipment.

3. Term: The idea of a specified duration emphasizes that leases are not open-ended; they come with a defined beginning and end, reinforcing the temporary nature of the use granted.

The other options do not align with the UCC's definition. A lease is not merely a purchase agreement (which implies ownership transfer) or a rental agreement