400.2A-528. Lessor's damages for nonacceptance or repudiation.

Lessor's damages for nonacceptance or repudiation.

400.2A-528. (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 lessor elects toretain the goods or a lessor elects to dispose of the goods andthe disposition is by lease agreement that for any reason doesnot qualify for treatment under section 400.2A-527(2), or is bysale or otherwise, the lessor may recover from the lessee asdamages for a default of the type described in section400.2A-523(1) or 400.2A-523(3)(a), or, if agreed, for otherdefault of the lessee, (i) accrued and unpaid rent as of the dateof default if the lessee has never taken possession of the goods,or, if the lessee has taken possession of the goods, as of thedate the lessor repossesses the goods or an earlier date on whichthe lessee makes a tender of the goods to the lessor, (ii) thepresent value as of the date determined under clause (i) of thetotal rent for the then remaining lease term of the originallease agreement minus the present value as of the same date ofthe market rent at the place where the goods are located computedfor the same lease term, and (iii) any incidental damages allowedunder section 400.2A-530, less expenses saved in consequence ofthe lessee's default.

(2) If the measure of damages provided in subsection (1) isinadequate to put a lessor in as good a position as performancewould have, the measure of damages is the present value of theprofit, including reasonable overhead, the lessor would have madefrom full performance by the lessee, together with any incidentaldamages allowed under section 400.2A-530, due allowance for costsreasonably incurred and due credit for payments or proceeds ofdisposition.

(L. 1992 S.B. 448)