70A-2a-510. Installment lease contracts -- Rejection and default.
(1) 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 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 deliveries
substantially impairs the value of the installment lease contract as a whole, there is a default with
respect to the whole. But, the aggrieved party reinstates the installment lease contract as a whole
if the aggrieved party accepts a nonconforming delivery without seasonably notifying of
cancellation or brings an action with respect only to past deliveries or demands performance as to
future deliveries.
Enacted by Chapter 197, 1990 General Session
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Last revised: Thursday, May 28, 2009