WILLIAM DONALD SCHAEFER, Governor                           S.B. 147

2A-519. 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 (§ 2A-504) OR OTHERWISE DETERMINED
PURSUANT TO AGREEMENT OF THE PARTIES (§ 1-102(3) AND § 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 FOR TREATMENT
UNDER § 2A-518(2), OR IS BY PURCHASE OR OTHERWISE THE MEASURE OF DAMAGES
FOR NONDELIVERY OR REPUDIATION BY THE LESSOR OR FOR REJECTION OR
REVOCATION OF ACCEPTANCE BY THE LESSEE IS THE PRESENT VALUE AS OF THE
DATE OF THE DEFAULT OF THE THEN MARKET RENT MINUS THE PRESENT VALUE
AS OF THE SAME DATE OF THE ORIGINAL RENT, COMPUTED FOR THE REMAINING
LEASE TERM OF THE ORIGINAL LEASE AGREEMENT, TOGETHER WITH INCIDENTAL
AND CONSEQUENTIAL DAMAGES, LESS EXPENSES SAVED IN CONSEQUENCE OF THE
LESSOR'S DEFAULT.

(2)      MARKET RENT IS TO BE DETERMINED AS OF THE PLACE FOR TENDER OR,
IN CASES OF REJECTION AFTER ARRIVAL OR REVOCATION OF ACCEPTANCE, AS OF
THE PLACE OF ARRIVAL.

(3)      EXCEPT AS OTHERWISE AGREED, IF THE LESSEE HAS ACCEPTED GOODS
AND GIVEN NOTIFICATION (§ 2A-516(3)), THE MEASURE OF DAMAGES FOR
NONCONFORMING TENDER OR DELIVERY OR OTHER DEFAULT BY A LESSOR IS THE
LOSS RESULTING IN THE ORDINARY COURSE OF EVENTS FROM THE LESSOR'S
DEFAULT AS DETERMINED IN ANY MANNER THAT IS REASONABLE TOGETHER WITH
INCIDENTAL AND CONSEQUENTIAL DAMAGES, LESS EXPENSES SAVED IN
CONSEQUENCE OF THE LESSOR'S DEFAULT.

(4)      EXCEPT AS OTHERWISE AGREED, THE MEASURE OF DAMAGES FOR
BREACH OF WARRANTY IS THE PRESENT VALUE AT THE TIME AND PLACE OF
ACCEPTANCE OF THE DIFFERENCE BETWEEN THE VALUE OF THE USE OF THE
GOODS ACCEPTED AND THE VALUE IF THEY HAD BEEN AS WARRANTED FOR THE
LEASE TERM, UNLESS SPECIAL CIRCUMSTANCES SHOW PROXIMATE DAMAGES OF A

DIFFERENT AMOUNT, TOGETHER WITH INCIDENTAL AND CONSEQUENTIAL
DAMAGES, LESS EXPENSES SAVED IN CONSEQUENCE OF THE LESSOR'S DEFAULT OR
BREACH OF WARRANTY.

2A-520. LESSEE'S INCIDENTAL AND CONSEQUENTIAL DAMAGES

(1)      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.

(2)      CONSEQUENTIAL DAMAGES RESULTING FROM A LESSOR'S DEFAULT
INCLUDE:

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