70A-2a-510 - Installment lease contracts -- Rejection and default.
70A-2a-510. Installment lease contracts -- Rejection and default.
(1) Under an installment lease contract, a lessee may reject any delivery that isnonconforming if the nonconformity substantially impairs the value of that delivery and cannot becured or the nonconformity is a defect in the required documents; but if the nonconformity doesnot fall within Subsection (2) and the lessor or the supplier gives adequate assurance of its cure,the lessee must accept that delivery.
(2) Whenever nonconformity or default with respect to one or more deliveriessubstantially impairs the value of the installment lease contract as a whole, there is a default withrespect to the whole. But, the aggrieved party reinstates the installment lease contract as a wholeif the aggrieved party accepts a nonconforming delivery without seasonably notifying ofcancellation or brings an action with respect only to past deliveries or demands performance as tofuture deliveries.
Enacted by Chapter 197, 1990 General Session