§2-1501. Default; procedure (1). Whether the lessor or the lessee is in default under a lease contract is determined by the lease agreement and this Article. [PL 1991, c. 805, §4 (NEW).] (2). If the lessor or the lessee is in default under the lease contract, the party seeking enforcement has rights and remedies […]
§2-1502. Notice after default Except as otherwise provided in this Article or the lease agreement, the lessor or lessee in default under the lease contract is not entitled to notice of default or notice of enforcement from the other party to the lease agreement. [PL 1991, c. 805, §4 (NEW).] SECTION HISTORY PL 1991, […]
§2-1503. Modification or impairment of rights and remedies (1). Except as otherwise provided in this Article, the lease agreement may include rights and remedies for default in addition to or in substitution for those provided in this Article and may limit or alter the measure of damages recoverable under this Article. [PL 1991, c. […]
§2-1504. Liquidation of damages (1). Damages payable by either party for default or any other act or omission, including indemnity for loss or diminution of anticipated tax benefits or loss or damage to lessor’s residual interest, may be liquidated in the lease agreement but only at an amount or by a formula that is reasonable […]
§2-1505. Cancellation and termination and effect of cancellation, termination, rescission or fraud on rights and remedies (1). On cancellation of the lease contract, all obligations that are still executory on both sides are discharged, but any right based on prior default or performance survives and the cancelling party also retains any remedy for default of […]
§2-1506. Statute of limitations (1). An action for default under a lease contract, including breach of warranty or indemnity, must be commenced within 4 years after the cause of action accrued. By the original lease contract the parties may reduce the period of limitation to not less than one year. [PL 1991, c. 805, […]
§2-1507. Proof of market rent; time and place (1). Damages based on market rent (section 2‑1519 or 2‑1528) are determined according to the rent for the use of the goods concerned for a lease term identical to the remaining lease term of the original lease agreement and prevailing at the times specified in sections 2‑1519 […]
§2-1508. Lessee’s remedies (1). If a lessor fails to deliver the goods in conformity to the lease contract (section 2‑1509) or repudiates the lease contract (section 2‑1402) or a lessee rightfully rejects the goods (section 2‑1509) or justifiably revokes acceptance of the goods (section 2‑1517) then, with respect to any goods involved and with respect […]
§2-1509. Lessee’s rights on improper delivery; rightful rejection (1). Subject to the provisions of section 2-1510 on default in installment lease contracts, if the goods or the tender or delivery fail in any respect to conform to the lease contract, the lessee may reject or accept the goods or accept any commercial unit or units […]
§2-1510. Installment lease contracts; rejection and default (1). Under an installment lease contract, a lessee may reject any delivery that is nonconforming if the nonconformity substantially impairs the value of that delivery and can not be cured or if the nonconformity is a defect in the required documents; but if the nonconformity does not fall […]
§2-1511. Merchant lessee’s duties as to rightfully rejected goods (1). Subject to any security interest of a lessee (section 2‑1508, subsection (5)), if a lessor or a supplier has no agent or place of business at the market of rejection, a merchant lessee, after rejection of goods in the merchant lessee’s possession or control, shall […]
§2-1512. Lessee’s duties as to rightfully rejected goods (1). Except as otherwise provided with respect to goods that threaten to decline in value speedily (section 2‑1511), and subject to any security interest of a lessee (section 2‑1508, subsection (5)): (a). The lessee, after rejection of goods in the lessee’s possession, shall hold them with […]
§2-1513. Cure by lessor of improper tender or delivery; replacement (1). If any tender or delivery by the lessor or the supplier is rejected because nonconforming and the time for performance has not yet expired, the lessor or the supplier may seasonably notify the lessee of the lessor’s or the supplier’s intention to cure and […]
§2-1514. Waiver of lessee’s objections (1). In rejecting goods, a lessee’s failure to state a particular defect that is ascertainable by reasonable inspection precludes the lessee from relying on the defect to justify rejection or to establish default: (a). If, stated seasonably, the lessor or the supplier could have cured it (section 2‑1513); or […]
§2-1515. Acceptance of goods (1). Acceptance of goods occurs after the lessee has had a reasonable opportunity to inspect the goods and: (a). The lessee signifies or acts with respect to the goods in a manner that signifies to the lessor or the supplier that the goods are conforming or that the lessee will […]
§2-1516. Effect of acceptance of goods; notice of default; burden of establishing default after acceptance; notice of claim or litigation to person answerable over (1). A lessee must pay rent for any goods accepted in accordance with the lease contract, with due allowance for goods rightfully rejected or not delivered. [PL 1991, c. 805, […]
§2-1517. Revocation of acceptance of goods (1). A lessee may revoke acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to the lessee if the lessee has accepted it: (a). Except in the case of a finance lease, on the reasonable assumption that its nonconformity would be cured and it […]
§2-1518. Cover; substitute goods (1). After a default by a lessor under the lease contract of the type described in section 2‑1508, subsection (1), or, if agreed, after other default by the lessor, the lessee may cover by making any purchase or lease of or contract to purchase or lease goods in substitution for those […]
§2-1519. Lessee’s damages for nondelivery, repudiation, default and breach of warranty in regard to accepted goods (1). Except as otherwise provided with respect to damages liquidated in the lease agreement (section 2‑1504), or otherwise determined pursuant to agreement of the parties (section 1‑1302 and section 2‑1503) if a lessee elects not to cover or a […]
§2-1520. Lessee’s incidental and consequential damages (1). Incidental damages resulting from a lessor’s default include expenses reasonably incurred in inspection, receipt, transportation, care and custody of goods rightfully rejected or goods the acceptance of which is justifiably revoked, any commercially reasonable charges, expenses or commissions in connection with effecting cover and any other reasonable expense […]
