Lease Acceptance – what is it, when does it occur. Lease acceptance is the acknowledgment of receipt of delivery of the leased equipment and agreeing to the terms of the lease.
Signing a lease agreement does not constitute acceptance of the lease until you have accepted receipt of the equipment. In other words, unless the lease specifically lays out that equipment will be delivered in intervals, the lease acceptance hasn’t occurred until the authorized signor accepts the good. Acceptance of Goods is a requirement of a binding lease contract
Most people believe that once the lease is signed, the deal is done. That is not always the case.
Suppose you signed an equipment lease for a copier on Thursday. You do not receive delivery until next Friday and have not inspected the goods. During that time frame that falls between signing the lease and the time the acceptance of the goods takes place, you do not have a binding lease contract. The UCC article 2 requires that acceptance of the goods must take place for the lease acceptance to be a binding contract. You can get out of that contract easily if you have second doubts. You simply refuse to take delivery on the equipment. In fact, don’t even go to the showroom and try it out. It is possible that an inspection of the machine and an opportunity by the lessee to refuse acceptance, could have the affect of lease acceptance.