Minnesota Legislature
Office of the Revisor of Statutes
2006 Minnesota Statutes
This is an historical version of this statute chapter. Also view the most recent published version.
336.2A-523 LESSOR'S REMEDIES.
(1) 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 of
the whole lease contract is substantially impaired (section 336.2A-510), the lessee is in default
under the lease contract and the lessor may pursue any or all of the following remedies:
(a) cancel the lease contract (section 336.2A-505(1));
(b) proceed respecting goods not identified to the lease contract (section 336.2A-524);
(c) withhold delivery of the goods and take possession of goods previously delivered
(section 336.2A-525);
(d) stop delivery of the goods by any bailee (section 336.2A-526);
(e) dispose of the goods and recover damages (section 336.2A-527), or retain the goods and
recover damages (section 336.2A-528), or in a proper case recover rent (section 336.2A-529);
(f) exercise any other rights or pursue any other remedies provided in the lease contract.
(2) If a lessor does not fully exercise a right or obtain a remedy to which the lessor is entitled
under subsection (1), the lessor may recover the loss resulting in the ordinary course of events
from the lessee's default as determined in any reasonable manner, together with incidental
damages, less expenses saved in consequence of the lessee's default.
(3) If a lessee is otherwise in default under a lease contract, the lessor may exercise the rights
and pursue the remedies provided in the lease agreement, which may include a right to cancel the
lease. In addition, unless otherwise provided in the lease contract:
(a) if the default substantially impairs the value of the lease contract to the lessor, the lessor
may exercise the rights and pursue the remedies provided in subsection (1) or (2); or
(b) if the default does not substantially impair the value of the lease contract to the lessor, the
lessor may recover as provided in subsection (2).
History: 1989 c 232 art 1 s 2A-523; 1991 c 171 art 1 s 17
(1) 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 of
the whole lease contract is substantially impaired (section 336.2A-510), the lessee is in default
under the lease contract and the lessor may pursue any or all of the following remedies:
(a) cancel the lease contract (section 336.2A-505(1));
(b) proceed respecting goods not identified to the lease contract (section 336.2A-524);
(c) withhold delivery of the goods and take possession of goods previously delivered
(section 336.2A-525);
(d) stop delivery of the goods by any bailee (section 336.2A-526);
(e) dispose of the goods and recover damages (section 336.2A-527), or retain the goods and
recover damages (section 336.2A-528), or in a proper case recover rent (section 336.2A-529);
(f) exercise any other rights or pursue any other remedies provided in the lease contract.
(2) If a lessor does not fully exercise a right or obtain a remedy to which the lessor is entitled
under subsection (1), the lessor may recover the loss resulting in the ordinary course of events
from the lessee's default as determined in any reasonable manner, together with incidental
damages, less expenses saved in consequence of the lessee's default.
(3) If a lessee is otherwise in default under a lease contract, the lessor may exercise the rights
and pursue the remedies provided in the lease agreement, which may include a right to cancel the
lease. In addition, unless otherwise provided in the lease contract:
(a) if the default substantially impairs the value of the lease contract to the lessor, the lessor
may exercise the rights and pursue the remedies provided in subsection (1) or (2); or
(b) if the default does not substantially impair the value of the lease contract to the lessor, the
lessor may recover as provided in subsection (2).
History: 1989 c 232 art 1 s 2A-523; 1991 c 171 art 1 s 17
Official Publication of the State of Minnesota
Revisor of Statutes