(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:
(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.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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