Title 47 — Uniform Commercial Code

A. Damages payable by either party for default, or any other act or omission, including indemnity for loss or diminution of anticipated tax benefits or loss or damage to lessor's residual interest, may be liquidated in the lease agreement but only at an amount or by a formula tha…

A. On cancellation of the lease contract, all obligations that are still executory on both sides are discharged, but any right based on prior default or performance survives, and the cancelling party also retains any remedy for default of the whole lease contract or any unperform…

A. An action for default under a lease contract, including breach of warranty or indemnity, must be commenced within four years after the cause of action accrued. By the original lease contract the parties may reduce the period of limitation to not less than one year. B. A cause …

A. Damages based on market rent (section 47-2A519 or 47-2A528) are determined according to the rent for the use of the goods concerned for a lease term identical to the remaining lease term of the original lease agreement and prevailing at the times specified in sections 47-2A519…

A. If a lessor fails to deliver the goods in conformity to the lease contract (section 47-2A509) or repudiates the lease contract (section 47-2A402), or a lessee rightfully rejects the goods (section 47-2A509) or justifiably revokes acceptance of the goods (section 47-2A517), the…

A. Subject to the provisions of section 47-2A510 on default in installment lease contracts, if the goods or the tender or delivery fail in any respect to conform to the lease contract, the lessee may reject or accept the goods or accept any commercial unit or units and reject the…

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 fa…

A. Subject to any security interest of a lessee (section 47-2A508, subsection E), if a lessor or a supplier has no agent or place of business at the market of rejection, a merchant lessee, after rejection of goods in his possession or control, shall follow any reasonable instruct…

A. Except as otherwise provided with respect to goods that threaten to decline in value speedily (section 47-2A511) and subject to any security interest of a lessee (section 47-2A508, subsection E): 1. The lessee, after rejection of goods in the lessee's possession, shall hold th…

A. If any tender or delivery by the lessor or the supplier is rejected because nonconforming and the time for performance has not yet expired, the lessor or the supplier may seasonably notify the lessee of the lessor's or the supplier's intention to cure and may then make a confo…

A. In rejecting goods, a lessee's failure to state a particular defect that is ascertainable by reasonable inspection precludes the lessee from relying on the defect to justify rejection or to establish default: 1. If, stated seasonably, the lessor or the supplier could have cure…

A. Acceptance of goods occurs after the lessee has had a reasonable opportunity to inspect the goods and: 1. The lessee signifies or acts with respect to the goods in a manner that signifies to the lessor or the supplier that the goods are conforming or that the lessee will take …

A. 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. B. A lessee's acceptance of goods precludes rejection of the goods accepted. In the case of a finance lease, if made with kno…

A. 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: 1. Except in the case of a finance lease, on the reasonable assumption that its nonconformity would be cured and it has n…

A. After a default by a lessor under the lease contract of the type described in section 47-2A508, subsection A, or, if agreed, after other default by the lessor, the lessee may cover by making any purchase or lease of or contract to purchase or lease goods in substitution for th…

A. Except as otherwise provided with respect to damages liquidated in the lease agreement (section 47-2A504) or otherwise determined pursuant to agreement of the parties (sections 47-1302 and 47-2A503), if a lessee elects not to cover or a lessee elects to cover and the cover is …

A. 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, exp…

A. Specific performance may be decreed if the goods are unique or in other proper circumstances. B. A decree for specific performance may include any terms and conditions as to payment of the rent, damages or other relief that the court deems just. C. A lessee has a right of repl…

A. Subject to subsection B of this section and even though the goods have not been shipped, a lessee who has paid a part or all of the rent and security for goods identified to a lease contract (section 47-2A217) on making and keeping good a tender of any unpaid portion of the re…

A. If a lessee wrongfully rejects or revokes acceptance of goods or fails to make a payment when due or repudiates with respect to a part or the whole, then, with respect to any goods involved, and with respect to all of the goods if under an installment lease contract the value …

A. After default by the lessee under the lease contract of the type described in section 47-2A523, subsection A or section 47-2A523, subsection C, paragraph 1 or, if agreed, after other default by the lessee, the lessor may: 1. Identify to the lease contract conforming goods not …

A. If a lessor discovers the lessee to be insolvent, the lessor may refuse to deliver the goods. B. After a default by the lessee under the lease contract of the type described in section 47-2A523, subsection A or section 47-2A523, subsection C, paragraph 1 or, if agreed, after o…

A. A lessor may stop delivery of goods in the possession of a carrier or other bailee if the lessor discovers the lessee to be insolvent and may stop delivery of carload, truckload, planeload or larger shipments of express or freight if the lessee repudiates or fails to make a pa…

A. After a default by a lessee under the lease contract of the type described in section 47-2A523, subsection A or subsection C, paragraph 1 or after the lessor refuses to deliver or takes possession of goods (section 47-2A525 or 47-2A526), or, if agreed, after other default by a…

A. Except as otherwise provided with respect to damages liquidated in the lease agreement (section 47-2A504) or otherwise determined pursuant to agreement of the parties (sections 47-1302 and 47-2A503), if a lessor elects to retain the goods or a lessor elects to dispose of the g…

A. After default by the lessee under the lease contract of the type described in section 47-2A523, subsection A or subsection C, paragraph 1 or, if agreed, after other default by the lessee, if the lessor complies with subsection B of this section, the lessor may recover from the…

Incidental damages to an aggrieved lessor include any commercially reasonable charges, expenses or commissions incurred in stopping delivery, in the transportation, care and custody of goods after the lessee's default, in connection with return or disposition of the goods or othe…

A. If a third party so deals with goods that have been identified to a lease contract as to cause actionable injury to a party to the lease contract the lessor has a right of action against the third party, and the lessee also has a right of action against the third party if the …

In addition to any other recovery permitted by this chapter or other law, the lessor may recover from the lessee an amount that will fully compensate the lessor for any loss of or damage to the lessor's residual interest in the goods caused by the default of the lessee.