(810 ILCS 5/2A‑508) (from Ch. 26, par. 2A‑508)
Sec. 2A‑508. Lessee's remedies.
(1) If a lessor fails to deliver the goods in conformity to the lease contract (Section 2A‑509) or repudiates the lease contract (Section 2A‑402), or a lessee rightfully rejects the goods (Section 2A‑509) or justifiably revokes acceptance of the goods (Section 2A‑517), then with respect to any goods involved, and with respect to all of the goods if under an installment lease contract the value of the whole lease contract is substantially impaired (Section 2A‑510), the lessor is in default under the lease contract and the lessee may:
(a) cancel the lease contract (Section 2A‑505(1));
(b) recover so much of the rent and security as has |
| been paid and is just under the circumstances; | |
(c) cover and recover damages as to all goods |
| affected whether or not they have been identified to the lease contract (Sections 2A‑518 and 2A‑520), or recover damages for nondelivery (Sections 2A‑519 and 2A‑520); | |
(d) exercise any other rights or pursue any other |
| remedies provided in the lease contract. | |
(2) If a lessor fails to deliver the goods in conformity to the lease contract or repudiates the lease contract, the lessee may also:
(a) if the goods have been identified, recover them |
|
(b) in a proper case, obtain specific performance or |
| replevy the goods (Section 2A‑521). | |
(3) If a lessor is otherwise in default under a lease contract, the lessee may exercise the rights and pursue the remedies provided in the lease contract, which may include a right to cancel the lease, and in Section 2A‑519(3).
(4) If a lessor has breached a warranty, whether express or implied, the lessee may recover damages (Section 2A‑519(4)).
(5) On rightful rejection or justifiable revocation of acceptance, a lessee has a security interest in goods in the lessee's possession or control for any rent and security that has been paid and any expenses reasonably incurred in their inspection, receipt, transportation, and care and custody and may hold those goods and dispose of them in good faith and in a commercially reasonable manner, subject to Section 2A‑527(5).
(6) Subject to the provisions of Section 2A‑407, a lessee, on notifying the lessor of the lessee's intention to do so, may deduct all or any part of the damages resulting from any default under the lease contract from any part of the rent still due under the same lease contract.
(Source: P.A. 87‑493.) |
(810 ILCS 5/2A‑512) (from Ch. 26, par. 2A‑512)
Sec. 2A‑512. Lessee's duties as to rightfully rejected goods.
(1) Except as otherwise provided with respect to goods that threaten to decline in value speedily (Section 2A‑511) and subject to any security interest of a lessee (Section 2A‑508(5)):
(a) the lessee, after rejection of goods in the |
| lessee's possession, shall hold them with reasonable care at the lessor's or the supplier's disposition for a reasonable time after the lessee's seasonable notification of rejection; | |
(b) if the lessor or the supplier gives no |
| instructions within a reasonable time after notification of rejection, the lessee may store the rejected goods for the lessor's or the supplier's account or ship them to the lessor or the supplier or dispose of them for the lessor's or the supplier's account with reimbursement in the manner provided in Section 2A‑511; but | |
(c) the lessee has no further obligations with |
| regard to goods rightfully rejected. | |
(2) Action by the lessee pursuant to subsection (1) is not acceptance or conversion.
(Source: P.A. 87‑493.) |
(810 ILCS 5/2A‑516) (from Ch. 26, par. 2A‑516)
Sec. 2A‑516. Effect of acceptance of goods; notice of default; burden of establishing default after acceptance; notice of claim or litigation to person answerable over.
(1) A lessee must pay rent for any goods accepted in accordance with the lease contract, with due allowance for goods rightfully rejected or not delivered.
(2) A lessee's acceptance of goods precludes rejection of the goods accepted. In the case of a finance lease, if made with knowledge of a nonconformity, acceptance cannot be revoked because of it. In any other case, if made with knowledge of a nonconformity, acceptance cannot be revoked because of it unless the acceptance was on the reasonable assumption that the nonconformity would be seasonably cured. Acceptance does not of itself impair any other remedy provided by this Article or the lease agreement for nonconformity.
(3) If a tender has been accepted:
(a) within a reasonable time after the lessee |
| discovers or should have discovered any default, the lessee shall notify the lessor and the supplier, if any, or be barred from any remedy against the party not notified; | |
(b) except in the case of a consumer lease, within a |
| reasonable time after the lessee receives notice of litigation for infringement or the like (Section 2A‑211) the lessee shall notify the lessor or be barred from any remedy over for liability established by the litigation; and | |
(c) the burden is on the lessee to establish any |
|
(4) If a lessee is sued for breach of a warranty or other obligation for which a lessor or a supplier is answerable over the following apply:
(a) The lessee may give the lessor or the supplier, |
| or both, written notice of the litigation. If the notice states that the person notified may come in and defend and that if the person notified does not do so that person will be bound in any action against that person by the lessee by any determination of fact common to the 2 litigations, then unless the person notified after seasonable receipt of the notice does come in and defend that person is so bound. | |
(b) The lessor or the supplier may demand in writing |
| that the lessee turn over control of the litigation including settlement if the claim is one for infringement or the like (Section 2A‑211) or else be barred from any remedy over. If the demand states that the lessor or the supplier agrees to bear all expense and to satisfy any adverse judgment, then unless the lessee after seasonable receipt of the demand does turn over control the lessee is so barred. | |
(5) Subsections (3) and (4) apply to any obligation of a lessee to hold the lessor or the supplier harmless against infringement or the like (Section 2A‑211).
(Source: P.A. 87‑493.) |
(810 ILCS 5/2A‑517) (from Ch. 26, par. 2A‑517)
Sec. 2A‑517. Revocation of acceptance of goods.
(1) A lessee may revoke acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to the lessee if the lessee has accepted it:
(a) except in the case of a finance lease, on the |
| reasonable assumption that its nonconformity would be cured and it has not been seasonably cured; or | |
(b) without discovery of the nonconformity if the |
| lessee's acceptance was reasonably induced either by the lessor's assurances or, except in the case of a finance lease, by the difficulty of discovery before acceptance. | |
(2) Except in the case of a finance lease that is not a consumer lease, a lessee may revoke acceptance of a lot or commercial unit if the lessor defaults under the lease contract and the default substantially impairs the value of that lot or commercial unit to the lessee.
(3) If the lease agreement so provides, the lessee may revoke acceptance of a lot or commercial unit because of other defaults by the lessor.
(4) Revocation of acceptance must occur within a reasonable time after the lessee discovers or should have discovered the ground for it and before any substantial change in condition of the goods which is not caused by the nonconformity. Revocation is not effective until the lessee notifies the lessor.
(5) A lessee who so revokes has the same rights and duties with regard to the goods involved as if the lessee had rejected them.
(Source: P.A. 87‑493.) |
(810 ILCS 5/2A‑520) (from Ch. 26, par. 2A‑520)
Sec. 2A‑520. Lessee's incidental and consequential damages.
(1) Incidental damages resulting from a lessor's default include expenses reasonably incurred in inspection, receipt, transportation, and care and custody of goods rightfully rejected or goods the acceptance of which is justifiably revoked, any commercially reasonable charges, expenses, or commissions in connection with effecting cover, and any other reasonable expense incident to the default.
(2) Consequential damages resulting from a lessor's default include:
(a) any loss resulting from general or particular |
| requirements and needs of which the lessor at the time of contracting had reason to know and which could not reasonably be prevented by cover or otherwise; and | |
(b) injury to person or property proximately |
| resulting from any breach of warranty. | |
(Source: P.A. 87‑493.) |
(810 ILCS 5/2A‑508) (from Ch. 26, par. 2A‑508)
Sec. 2A‑508. Lessee's remedies.
(1) If a lessor fails to deliver the goods in conformity to the lease contract (Section 2A‑509) or repudiates the lease contract (Section 2A‑402), or a lessee rightfully rejects the goods (Section 2A‑509) or justifiably revokes acceptance of the goods (Section 2A‑517), then with respect to any goods involved, and with respect to all of the goods if under an installment lease contract the value of the whole lease contract is substantially impaired (Section 2A‑510), the lessor is in default under the lease contract and the lessee may:
(a) cancel the lease contract (Section 2A‑505(1));
(b) recover so much of the rent and security as has |
| been paid and is just under the circumstances; | |
(c) cover and recover damages as to all goods |
| affected whether or not they have been identified to the lease contract (Sections 2A‑518 and 2A‑520), or recover damages for nondelivery (Sections 2A‑519 and 2A‑520); | |
(d) exercise any other rights or pursue any other |
| remedies provided in the lease contract. | |
(2) If a lessor fails to deliver the goods in conformity to the lease contract or repudiates the lease contract, the lessee may also:
(a) if the goods have been identified, recover them |
|
(b) in a proper case, obtain specific performance or |
| replevy the goods (Section 2A‑521). | |
(3) If a lessor is otherwise in default under a lease contract, the lessee may exercise the rights and pursue the remedies provided in the lease contract, which may include a right to cancel the lease, and in Section 2A‑519(3).
(4) If a lessor has breached a warranty, whether express or implied, the lessee may recover damages (Section 2A‑519(4)).
(5) On rightful rejection or justifiable revocation of acceptance, a lessee has a security interest in goods in the lessee's possession or control for any rent and security that has been paid and any expenses reasonably incurred in their inspection, receipt, transportation, and care and custody and may hold those goods and dispose of them in good faith and in a commercially reasonable manner, subject to Section 2A‑527(5).
(6) Subject to the provisions of Section 2A‑407, a lessee, on notifying the lessor of the lessee's intention to do so, may deduct all or any part of the damages resulting from any default under the lease contract from any part of the rent still due under the same lease contract.
(Source: P.A. 87‑493.) |
(810 ILCS 5/2A‑512) (from Ch. 26, par. 2A‑512)
Sec. 2A‑512. Lessee's duties as to rightfully rejected goods.
(1) Except as otherwise provided with respect to goods that threaten to decline in value speedily (Section 2A‑511) and subject to any security interest of a lessee (Section 2A‑508(5)):
(a) the lessee, after rejection of goods in the |
| lessee's possession, shall hold them with reasonable care at the lessor's or the supplier's disposition for a reasonable time after the lessee's seasonable notification of rejection; | |
(b) if the lessor or the supplier gives no |
| instructions within a reasonable time after notification of rejection, the lessee may store the rejected goods for the lessor's or the supplier's account or ship them to the lessor or the supplier or dispose of them for the lessor's or the supplier's account with reimbursement in the manner provided in Section 2A‑511; but | |
(c) the lessee has no further obligations with |
| regard to goods rightfully rejected. | |
(2) Action by the lessee pursuant to subsection (1) is not acceptance or conversion.
(Source: P.A. 87‑493.) |
(810 ILCS 5/2A‑516) (from Ch. 26, par. 2A‑516)
Sec. 2A‑516. Effect of acceptance of goods; notice of default; burden of establishing default after acceptance; notice of claim or litigation to person answerable over.
(1) A lessee must pay rent for any goods accepted in accordance with the lease contract, with due allowance for goods rightfully rejected or not delivered.
(2) A lessee's acceptance of goods precludes rejection of the goods accepted. In the case of a finance lease, if made with knowledge of a nonconformity, acceptance cannot be revoked because of it. In any other case, if made with knowledge of a nonconformity, acceptance cannot be revoked because of it unless the acceptance was on the reasonable assumption that the nonconformity would be seasonably cured. Acceptance does not of itself impair any other remedy provided by this Article or the lease agreement for nonconformity.
(3) If a tender has been accepted:
(a) within a reasonable time after the lessee |
| discovers or should have discovered any default, the lessee shall notify the lessor and the supplier, if any, or be barred from any remedy against the party not notified; | |
(b) except in the case of a consumer lease, within a |
| reasonable time after the lessee receives notice of litigation for infringement or the like (Section 2A‑211) the lessee shall notify the lessor or be barred from any remedy over for liability established by the litigation; and | |
(c) the burden is on the lessee to establish any |
|
(4) If a lessee is sued for breach of a warranty or other obligation for which a lessor or a supplier is answerable over the following apply:
(a) The lessee may give the lessor or the supplier, |
| or both, written notice of the litigation. If the notice states that the person notified may come in and defend and that if the person notified does not do so that person will be bound in any action against that person by the lessee by any determination of fact common to the 2 litigations, then unless the person notified after seasonable receipt of the notice does come in and defend that person is so bound. | |
(b) The lessor or the supplier may demand in writing |
| that the lessee turn over control of the litigation including settlement if the claim is one for infringement or the like (Section 2A‑211) or else be barred from any remedy over. If the demand states that the lessor or the supplier agrees to bear all expense and to satisfy any adverse judgment, then unless the lessee after seasonable receipt of the demand does turn over control the lessee is so barred. | |
(5) Subsections (3) and (4) apply to any obligation of a lessee to hold the lessor or the supplier harmless against infringement or the like (Section 2A‑211).
(Source: P.A. 87‑493.) |
(810 ILCS 5/2A‑517) (from Ch. 26, par. 2A‑517)
Sec. 2A‑517. Revocation of acceptance of goods.
(1) A lessee may revoke acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to the lessee if the lessee has accepted it:
(a) except in the case of a finance lease, on the |
| reasonable assumption that its nonconformity would be cured and it has not been seasonably cured; or | |
(b) without discovery of the nonconformity if the |
| lessee's acceptance was reasonably induced either by the lessor's assurances or, except in the case of a finance lease, by the difficulty of discovery before acceptance. | |
(2) Except in the case of a finance lease that is not a consumer lease, a lessee may revoke acceptance of a lot or commercial unit if the lessor defaults under the lease contract and the default substantially impairs the value of that lot or commercial unit to the lessee.
(3) If the lease agreement so provides, the lessee may revoke acceptance of a lot or commercial unit because of other defaults by the lessor.
(4) Revocation of acceptance must occur within a reasonable time after the lessee discovers or should have discovered the ground for it and before any substantial change in condition of the goods which is not caused by the nonconformity. Revocation is not effective until the lessee notifies the lessor.
(5) A lessee who so revokes has the same rights and duties with regard to the goods involved as if the lessee had rejected them.
(Source: P.A. 87‑493.) |
(810 ILCS 5/2A‑520) (from Ch. 26, par. 2A‑520)
Sec. 2A‑520. Lessee's incidental and consequential damages.
(1) Incidental damages resulting from a lessor's default include expenses reasonably incurred in inspection, receipt, transportation, and care and custody of goods rightfully rejected or goods the acceptance of which is justifiably revoked, any commercially reasonable charges, expenses, or commissions in connection with effecting cover, and any other reasonable expense incident to the default.
(2) Consequential damages resulting from a lessor's default include:
(a) any loss resulting from general or particular |
| requirements and needs of which the lessor at the time of contracting had reason to know and which could not reasonably be prevented by cover or otherwise; and | |
(b) injury to person or property proximately |
| resulting from any breach of warranty. | |
(Source: P.A. 87‑493.) |