336.2A-508 LESSEE'S REMEDIES.
(1) If a lessor fails to deliver the goods in conformity to the lease contract (section
336.2A-509) or repudiates the lease contract (section
336.2A-402), or a lessee rightfully
rejects the goods (section
336.2A-509) or justifiably revokes acceptance of the goods (section
336.2A-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
336.2A-510), the lessor is in default under the lease contract and the lessee may pursue
any or all of the following remedies:
(a) cancel the lease contract (section
336.2A-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 (sections
336.2A-518 and
336.2A-520), or recover damages for
nondelivery (sections
336.2A-519 and
336.2A-520);
(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 (section
336.2A-522); or
(b) in a proper case, obtain specific performance or replevy the goods (section
336.2A-521).
(3) 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
336.2A-519(3).
(4) If a lessor has breached a warranty, whether express or implied, the lessee may recover
damages (section
336.2A-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 section
336.2A-527(5).
(6) Subject to the provisions of section
336.2A-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.
History: 1989 c 232 art 1 s 2A-508; 1991 c 171 art 1 s 12