Whether the lessor or the lessee is in default under a lease contract is determined by the lease agreement and this chapter. If the lessor or the lessee is in default under the lease contract, the party seeking enforcement has rights and remedies as provided in this chapter and, except as limited by this chapter, […]
Except as otherwise provided in this chapter 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.
Except as otherwise provided in this chapter, the lease agreement may include rights and remedies for default in addition to or in substitution for those provided in this chapter and may limit or alter the measure of damages recoverable under this chapter. Resort to a remedy provided under this chapter or in the lease agreement […]
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 in light of the then […]
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 canceling party also retains any remedy for default of the whole lease contract or any unperformed balance. On termination of the lease contract, all obligations that […]
An action for default under a lease contract, including breach of warranty or indemnity, must be commenced within four (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 (1) year. A cause of action for default accrues when […]
Damages based on market rent (§ 47-2A-519 or § 47-2A-528) 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 §§ 47-2A-519 and 47-2A-528. If evidence of rent for the […]
If a lessor fails to deliver the goods in conformity to the lease contract (§ 47-2A-509) or repudiates the lease contract (§ 47-2A-402), or a lessee rightfully rejects the goods (§ 47-2A-509) or justifiably revokes acceptance of the goods (§ 47-2A-517), then with respect to any goods involved, and with respect to all of the […]
Subject to the provisions of § 47-2A-510 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 and reject the rest of the goods. Rejection of […]
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 cannot be cured or the nonconformity is a defect in the required documents; but if the nonconformity does not fall within subsection (2) and the lessor or the supplier gives […]
Subject to any security interest of a lessee (§ 47-2A-508(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 his or her possession or control, shall follow any reasonable instructions received from the lessor or the supplier with […]
Except as otherwise provided with respect to goods that threaten to decline in value speedily (§ 47-2A-511) and subject to any security interest of a lessee (§ 47-2A-508(5)): the lessee, after rejection of goods in the lessee’s possession, shall hold them with reasonable care at the lessor’s or the supplier’s disposition for a reasonable time […]
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 may then make a conforming delivery within the time provided in […]
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: if, stated seasonably, the lessor or the supplier could have cured it (§ 47-2A-513); or between merchants if the lessor or the supplier […]
Acceptance of goods occurs after the lessee has had a reasonable opportunity to inspect the goods and 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 take or retain them in spite of […]
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. A lessee’s acceptance of goods precludes rejection of the goods accepted. In the case of a finance lease, if made with knowledge of a nonconformity, acceptance cannot be revoked because […]
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: except in the case of a finance lease, on the reasonable assumption that its nonconformity would be cured and it has not been seasonably cured; or without discovery of […]
After a default by a lessor under the lease contract of the type described in § 47-2A-508(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 due from the lessor. Except as otherwise […]
Except as otherwise provided with respect to damages liquidated in the lease agreement (§ 47-2A-504) or otherwise determined pursuant to agreement of the parties (§§ 47-1-302 and 47-2A-503), if a lessee elects not to cover or a lessee elects to cover and the cover is by lease agreement that for any reason does not qualify […]
Incidental damages resulting from a lessor’s default include expenses reasonably incurred in inspection, receipt, transportation, and 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 incident to the default. Consequential damages […]
