70A-2a-508 - Lessee's remedies.
70A-2a-508. Lessee's remedies.
(1) If a lessor fails to deliver the goods in conformity to the lease contract as provided inSection 70A-2a-509 or repudiates the lease contract as provided in Section 70A-2a-402, or alessee rightfully rejects the goods as provided in Section 70A-2a-509 or justifiably revokesacceptance of the goods as provided in Section 70A-2a-517, then with respect to any goodsinvolved, and with respect to all of the goods if under an installment lease contract the value ofthe whole lease contract is substantially impaired as provided in Section 70A-2a-510, the lessoris in default under the lease contract and the lessee may:
(a) cancel the lease contract as provided in Subsection 70A-2a-505(1);
(b) recover so much of the rent and security as has been paid and is just under thecircumstances;
(c) cover and recover damages as to all goods affected whether or not they have beenidentified to the lease contract as provided in Sections 70A-2a-518 and 70A-2a-520, or recoverdamages for nondelivery as provided in Sections 70A-2a-519 and 70A-2a-520; or
(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 repudiatesthe lease contract, the lessee may also:
(a) if the goods have been identified, recover them as provided in Section 70A-2a-522; or
(b) in a proper case, obtain specific performance or replevy the goods as provided inSection 70A-2a-521.
(3) If a lessor is in default under the lease contract, the lessee may exercise the rights andpursue the remedies provided for in the lease contract, which may include the right to cancel thelease, and in Section 70A-2a-519.
(4) If a lessor has breached a warranty, whether express or implied, the lessee mayrecover damages as provided in Subsection 70A-2a-519(4).
(5) On rightful rejection or justifiable revocation of acceptance, a lessee has a securityinterest in goods in the lessee's possession or control for any rent and security that has been paidand any expenses reasonably incurred in their inspection, receipt, transportation, and care andcustody and may hold those goods and dispose of them in good faith and in a commerciallyreasonable manner, subject to the provisions of Subsection 70A-2a-527(5).
(6) Subject to the provisions of Section 70A-2a-407, a lessee, on notifying the lessor ofthe lessee's intention to do so, may deduct all or any part of the damages resulting from anydefault under the lease contract from any part of the rent still due under the same lease contract.
Amended by Chapter 237, 1993 General Session