400.2A-505. Cancellation and termination and effect of cancellation, termination, rescission, or fraud on rights and remedies.
Cancellation and termination and effect of cancellation, termination,rescission, or fraud on rights and remedies.
400.2A-505. (1) On cancellation of the lease contract, allobligations that are still executory on both sides aredischarged, but any right based on prior default or performancesurvives, and the cancelling party also retains any remedy fordefault of the whole lease contract or any unperformed balance.
(2) On termination of the lease contract, all obligationsthat are still executory on both sides are discharged but anyright based on prior default or performance survives.
(3) Unless the contrary intention clearly appears,expressions of "cancellation", "rescission", or the like of thelease contract may not be construed as a renunciation ordischarge of any claim in damages for an antecedent default.
(4) Rights and remedies for material misrepresentation orfraud include all rights and remedies available under thisArticle for default.
(5) Neither rescission nor a claim for rescission of thelease contract nor rejection or return of the goods may bar or bedeemed inconsistent with a claim for damages or other right orremedy.
(L. 1992 S.B. 448)