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A chef rented property to run a restaurant and securely fastened commercial-grade kitchen equipment. Which statement is correct?

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Question & Answer

Review the question and all answer choices

A

Chef can remove equipment before lease termination

Correct Answer
B

Chef can remove equipment after lease ends

The timing of removal is irrelevant to the classification of the property. The equipment is removable at any time unless the lease specifically prohibits removal before termination.

C

Equipment is now part of real estate due to firm affixation

While secure fastening might suggest permanence, commercial kitchen equipment is specifically designed for business use rather than as part of the real property. Without explicit lease terms stating otherwise, it remains personal property.

D

Lessor determines removal rights

While lease terms can affect removal rights, the default position in California commercial law is that business equipment remains personal property regardless of the lessor's preference unless specifically addressed in the lease.

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