PARRIS N. GLENDENING, Governor                                 Ch. 3

DRAFTER'S NOTE:

Error: Incorrect punctuation in the introductory language of § 2A-214(3) of
the Commercial Law Article.

Occurred: Ch. 535, Acts of 1994.

Part II. Default by Lessor
2A-508.

(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.

DRAFTER'S NOTE:

Error: Stylistic error in the part designation immediately preceding § 2A-508

- 111 -