§ 6A-2.1-508 - Lessee's remedies.

SECTION 6A-2.1-508

   § 6A-2.1-508  Lessee's remedies. – (1) If a lessor fails to deliver the goods in conformity to the lease contract(§ 6A-2.1-509) or repudiates the lease contract (§ 6A-2.1-402), or alessee rightfully rejects the goods (§ 6A-2.1-509) or justifiably revokesacceptance of the goods (§ 6A-2.1-517), then with respect to any goodsinvolved, and with respect to all of the goods if under an installment leasecontract the value of the whole lease contract is substantially impaired(§ 6A-2.1-510), the lessor is in default under the lease contract and thelessee may:

   (a) Cancel the lease contract (§ 6A-2.1-505(1));

   (b) Recover so much of the rent and security as has been paidand is just under the circumstances;

   (c) Cover and recover damages as to all goods affectedwhether or not they have been identified to the lease contract (§§6A-2.1-518 and 6A-2.1-520), or recover damages for nondelivery (§§6A-2.1-519 and 6A-2.1-520);

   (d) Exercise any other rights or pursue any other remediesprovided in the lease contract.

   (2) If a lessor fails to deliver the goods in conformity tothe lease contract or repudiates the lease contract, the lessee may also:

   (a) If the goods have been identified, recover them (§6A-2.1-522); or

   (b) In a proper case, obtain specific performance or replevythe goods (§ 6A-2.1-521).

   (3) If a lessor is otherwise in default under a leasecontract, the lessee may exercise the rights and pursue the remedies providedin the lease contract, which may include a right to cancel the lease, and in§ 6A-2.1-519(3).

   (4) If a lessor has breached a warranty, whether express orimplied, the lessee may recover damages (§ 6A-2.1-519(4)).

   (5) On rightful rejection or justifiable revocation ofacceptance, a lessee has a security interest in goods in the lessee'spossession or control for any rent and security that has been paid and anyexpenses reasonably incurred in their inspection, receipt, transportation, andcare and custody and may hold those goods and dispose of them in good faith andin a commercially reasonable manner, subject to § 6A-2.1-527(5).

   (6) Subject to the provisions of § 6A-2.1-407, a lessee,on notifying the lessor of the lessee's intention to do so, may deduct all orany part of the damages resulting from any default under the lease contractfrom any part of the rent still due under the same lease contract.