§ 6A-2.1-518 - Cover – Substitute goods.
SECTION 6A-2.1-518
§ 6A-2.1-518 Cover – Substitutegoods. – (1) After a default by a lessor under the lease contract of the type describedin § 6A-2.1-508(1), or, if agreed, after other default by the lessor, thelessee may cover by making any purchase or lease of or contract to purchase orlease goods in substitution for those due from the lessor.
(2) Except as otherwise provided with respect to damagesliquidated in the lease agreement (§ 6A-2.1-504) or otherwise determinedpursuant to agreement of the parties (§§ 6A-1-302 and 6A-2.1-503), ifa lessee's cover is by a lease agreement substantially similar to the originallease agreement and the new lease agreement is made in good faith and in acommercially reasonable manner, the lessee may recover from the lessor asdamages (i) the present value, as of the date of the commencement of the termof the new lease agreement, of the rent under the new lease agreementapplicable to that period of the new lease term which is comparable to the thenremaining term of the original lease agreement minus the present value as ofthe same date of the total rent for the then remaining lease term of theoriginal lease agreement, and (ii) any incidental or consequential damages,less expenses saved in consequence of the lessor's default.
(3) If a lessee's cover is by lease agreement that for anyreason does not qualify for treatment under subsection (2), or is by purchaseor otherwise, the lessee may recover from the lessor as if the lessee hadelected not to cover and § 6A-2.1-519 governs.