70A-2a-508. Lessee's remedies.
(1) If a lessor fails to deliver the goods in conformity to the lease contract as provided in
Section 70A-2a-509 or repudiates the lease contract as provided in Section 70A-2a-402, or a
lessee rightfully rejects the goods as provided in Section 70A-2a-509 or justifiably revokes
acceptance of the goods as provided in Section 70A-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 as provided in Section 70A-2a-510, the lessor is
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 the
circumstances;
(c) cover and recover damages as to all goods affected whether or not they have been
identified to the lease contract as provided in Sections 70A-2a-518 and 70A-2a-520, or recover
damages 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 repudiates
the 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 in
Section 70A-2a-521.
(3) If a lessor is in default under the lease contract, the lessee may exercise the rights and
pursue the remedies provided for in the lease contract, which may include the right to cancel the
lease, and in Section 70A-2a-519.
(4) If a lessor has breached a warranty, whether express or implied, the lessee may
recover damages as provided in Subsection 70A-2a-519 (4).
(5) 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 the provisions of Subsection 70A-2a-527 (5).
(6) Subject to the provisions of Section 70A-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.
Amended by Chapter 237, 1993 General Session
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Last revised: Thursday, May 28, 2009