WILLIAM DONALD SCHAEFER, Governor                           S.B. 147

PART II. DEFAULT BY LESSOR
2A-508. LESSEE'S REMEDIES

(1)      IF A LESSOR FAILS TO DELIVER THE GOODS IN CONFORMITY TO THE
LEASE CONTRACT (§ 2A-509) OR REPUDIATES THE LEASE CONTRACT (§ 2A-402), OR A
LESSEE RIGHTFULLY REJECTS THE GOODS (§ 2A-509) OR JUSTIFIABLY REVOKES
ACCEPTANCE OF THE GOODS (§ 2A-517), THEN WITH RESPECT TO ANY GOODS
INVOLVED, AND WITH RESPECT TO ALL OF THE GOODS IF UNDER AN INSTALLMENT
LEASE CONTRACT THE VALUE OF THE WHOLE LEASE CONTRACT IS SUBSTANTIALLY
IMPAIRED (§ 2A-510), THE LESSOR IS IN DEFAULT UNDER THE LEASE CONTRACT AND
THE LESSEE MAY:

(A)     CANCEL THE LEASE CONTRACT (§ 2A-505(1));

(B)     RECOVER SO MUCH OF THE RENT AND SECURITY AS HAS BEEN PAID
AND IS JUST UNDER THE CIRCUMSTANCES;

(C)     COVER AND RECOVER DAMAGES AS TO ALL GOODS AFFECTED
WHETHER OR NOT THEY HAVE BEEN IDENTIFIED TO THE LEASE CONTRACT (§§
2A-518 AND 2A-520), OR RECOVER DAMAGES FOR NONDELIVERY (§§ 2A-519 AND
2A-520);

(D)     EXERCISE ANY OTHER RIGHTS OR PURSUE ANY OTHER REMEDIES
PROVIDED IN THE LEASE CONTRACT.

(2)      IF A LESSOR FAILS TO DELIVER THE GOODS IN CONFORMITY TO THE
LEASE CONTRACT OR REPUDIATES THE LEASE CONTRACT, THE LESSEE MAY ALSO:

(A)     IF THE GOODS HAVE BEEN IDENTIFIED, RECOVER THEM (§ 2A-522);
OR

(B)     IN A PROPER CASE, OBTAIN SPECIFIC PERFORMANCE OR REPLEVY
THE GOODS (§ 2A-521).

(3)      IF A LESSOR IS OTHERWISE IN DEFAULT UNDER A LEASE CONTRACT, THE
LESSEE MAY EXERCISE THE RIGHTS AND PURSUE THE REMEDIES PROVIDED IN THE
LEASE CONTRACT, WHICH MAY INCLUDE A RIGHT TO CANCEL THE LEASE, AND IN §
2A-519(3).

(4)      IF A LESSOR HAS BREACHED A WARRANTY, WHETHER EXPRESS OR
IMPLIED, THE LESSEE MAY RECOVER DAMAGES (§ 2A-519(4)).

(5)      SUBJECT TO THE PROVISIONS OF § 2A-407, A LESSEE, ON NOTIFYING THE
LESSOR OF THE LESSEE'S INTENTION TO DO SO, MAY DEDUCT ALL OR ANY PART OF
THE DAMAGES RESULTING FROM ANY DEFAULT UNDER THE LEASE CONTRACT
FROM ANY PART OF THE RENT STILL DUE UNDER THE SAME LEASE CONTRACT.

2A-509. LESSEE'S RIGHTS ON IMPROPER DELIVERY; RIGHTFUL REJECTION

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