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The Uniform Commercial Code (UCC) governs the sale and lease of goods, with Article 2 covering sales and Article 2A covering leases. Most states have adopted the UCC in its entirety as state law, providing confidence that its provisions apply. It is essential to determine the nature of the agreement—whether it is a lease or a sale, as these can often be conflated. A lease allows for the use of property, while a sale involves the transfer of ownership. Understanding the distinctions between these agreements is crucial for parties involved in commercial transactions under the UCC.
