Which statement about acceptance in a lease is true?

Which statement about acceptance in a lease is true?

• A. Acceptance occurs when delivered
• B. Acceptance occurs at signing
• C. Acceptance occurs after inspection
• D. Acceptance is not defined in the lease

Answer: (A)

Acceptance happens when the asset is delivered and the lessee takes possession and control. That moment marks when the right to use the asset transfers, and the lease term effectively begins. Signing the lease is simply agreeing to the contract terms, not accepting the asset itself. An inspection can happen to verify condition, but it doesn’t by itself constitute acceptance unless the asset is delivered and meets the agreed terms. If the asset isn’t delivered as agreed, acceptance wouldn’t occur until any needed remedies are completed, or rejection is resolved. So, the true statement is that acceptance occurs when delivered.

Acceptance happens when the asset is delivered and the lessee takes possession and control. That moment marks when the right to use the asset transfers, and the lease term effectively begins. Signing the lease is simply agreeing to the contract terms, not accepting the asset itself. An inspection can happen to verify condition, but it doesn’t by itself constitute acceptance unless the asset is delivered and meets the agreed terms. If the asset isn’t delivered as agreed, acceptance wouldn’t occur until any needed remedies are completed, or rejection is resolved. So, the true statement is that acceptance occurs when delivered.