General Electric Credit Corp. v. Xerox Corp.
Opinion of the Court
Order unanimously affirmed, with costs. Memorandum: Special Term correctly found that the nonassignment clause in the master lease agreement between William Thom & Company (Thom) and Xerox is valid but that it is merely a personal covenant by Thom not to assign its rights under the agreement without the consent of Xerox. Plaintiff, Thom’s assignee, was thus not barred from bringing this action (see, Sullivan v International Fid. Ins. Co., 96 AD2d 555). Although the agreement between Thom and Xerox was a bare lease and, without more, would not be within the scope of the Uniform Commercial Code (see, Mileasing Co. v Hogan, 87 AD2d 961), the parties agreed that UCC remedies are applicable in the event of default. Plaintiff contends that Xerox may not avail itself of those remedies because it accepted the equipment (UCC 2-606 [1]); did not give notice of the breach within a reasonable time after discovery (UCC 2-607 [3] [a]); nor revoke acceptance in a timely manner (UCC 2-608 [2]). Although it is clear that Xerox did not notify plaintiff that it considered the agreement breached, a question of fact exists as to whether Xerox, which denies being aware of the assignment, was under an
Case-law data current through December 31, 2025. Source: CourtListener bulk data.