Subpart B. 
Default by Lessor



 



§490:2A-508  Lessee's remedies.  (a)  If
a lessor fails to deliver the goods in conformity to the lease contract
(section 490:2A-509) or repudiates the lease contract (section 490:2A-402), or
a lessee rightfully rejects the goods (section 490:2A-509) or justifiably
revokes acceptance of the goods (section 490:2A-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 490:2A-510), the lessor is in default under the lease contract and the
lessee may:



(1)  Cancel the lease contract (section
490:2A-505(a));



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



(3)  Cover and recover damages as to all goods
affected whether or not they have been identified to the lease contract
(sections 490:2A-518 and 490:2A-520), or recover damages for nondelivery
(sections 490:2A-519 and 490:2A-520);



(4)  Exercise any other rights or pursue any other
remedies provided in the lease contract.



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



(1)  If the goods have been identified, recover them
(section 490:2A-522); or



(2)  In a proper case, obtain specific performance or
replevy the goods (section 490:2A-521).



(c)  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 490:2A-519(c).



(d)  If a lessor has breached a warranty,
whether express or implied, the lessee may recover damages (section
490:2A-519(d)).



(e)  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 490:2A-527(e).



(f)  Subject to the provisions of section
490:2A-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. [L 1991, c 40, pt of §1]