70A-2a-528 - Lessor's damages for nonacceptance, failure to pay, repudiation, or other default.
70A-2a-528. Lessor's damages for nonacceptance, failure to pay, repudiation, orother default.
(1) Except as otherwise provided with respect to damages liquidated in the leaseagreement as provided in Section 70A-2a-504 or otherwise determined pursuant to agreement ofthe parties as provided in Sections 70A-1a-302 and 70A-2a-503, if a lessor elects to retain thegoods or a lessor elects to dispose of the goods and the disposition is by lease agreement whetheror not the lease agreement qualifies for treatment under Subsection 70A-2a-527(2), or is by saleor otherwise, the lessor may recover from the lessee as damages for a default of the typedescribed in Section 70A-2a-523 or, if agreed, for any other default of the lessee:
(a) accrued and unpaid rent as of the date of default if the lessee has never takenpossession of the goods, or, if the lessee has taken possession of the goods, as of the date onwhich the lessee makes a tender of the goods to the lessor;
(b) the present value as of the date determined under Subsection (1)(a) of default of thetotal rent for the then remaining lease term of the original lease agreement and minus the presentvalue as of the same date of the market rent at the place where the goods are located computedfor the same lease term; and
(c) any incidental damages allowed under Section 70A-2a-530, less expenses saved inconsequence of the lessee's default.
(2) If the measure of damages provided in Subsection (1) is inadequate to put a lessor inas good a position as performance would have, the measure of damages is the present value ofthe profit, including reasonable overhead, the lessor would have made from full performance bythe lessee, together with any incidental damages allowed under Section 70A-2a-530, dueallowance for costs reasonably incurred and due credit for payments or proceeds of disposition.
Amended by Chapter 272, 2007 General Session