47-2A510. Installment lease contracts;
rejection and default
A. Under an installment lease contract a lessee may reject any delivery that is
nonconforming if the nonconformity substantially impairs the value of that delivery and
cannot be cured or the nonconformity is a defect in the required documents, but if the
nonconformity does not fall within subsection B and the lessor or the supplier gives
adequate assurance of its cure, the lessee must accept that delivery.
B. Whenever nonconformity or default with respect to one or more deliveries
substantially impairs the value of the installment lease contract as a whole there is a
default with respect to the whole. But, the aggrieved party reinstates the installment
lease contract as a whole if the aggrieved party accepts a nonconforming delivery without
seasonably notifying of cancellation or brings an action with respect only to past
deliveries or demands performance as to future deliveries.
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