400.2A-519. Lessee's damages for nondelivery, repudiation, default, and breach of warranty in regard to accepted goods.

Lessee's damages for nondelivery, repudiation, default, and breach ofwarranty in regard to accepted goods.

400.2A-519. (1) Except as otherwise provided with respectto damages liquidated in the lease agreement (Section 400.2A-504)or otherwise determined pursuant to agreement of the parties(Sections 400.1-102(3) and 400.2A-503), if a lessee elects not tocover or a lessee elects to cover and the cover is by leaseagreement that for any reason does not qualify for treatmentunder section 400.2A-518(2), or is by purchase or otherwise, themeasure of damages for non-delivery or repudiation by the lessoror for rejection or revocation of acceptance by the lessee is thepresent value, as of the date of the default, of the then marketrent minus the present value as of the same date of the originalrent, computed for the remaining lease term of the original leaseagreement, 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 fortender or, in cases of rejection after arrival or revocation ofacceptance, as of the place of arrival.

(3) Except as otherwise agreed, if the lessee has acceptedgoods and given notification (Section 400.2A-516(3)), the measureof damages for non-conforming tender or delivery or other defaultby a lessor is the loss resulting in the ordinary course ofevents from the lessor's default as determined in any manner thatis 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 forbreach of warranty is the present value at the time and place ofacceptance of the difference between the value of the use of thegoods accepted and the value if they had been as warranted forthe lease term, unless special circumstances show proximatedamages of a different amount, together with incidental andconsequential damages, less expenses saved in consequence of thelessor's default or breach of warranty.

(L. 1992 S.B. 448)