Arizona Laws 47-2A528. Lessor’s damages for nonacceptance, failure to pay, repudiation or other default
A. Except as otherwise provided with respect to damages liquidated in the lease agreement (section 47-2A504) or otherwise determined pursuant to agreement of the parties (sections 47-1302 and 47-2A503), if a lessor elects to retain the goods or a lessor elects to dispose of the goods and the disposition is by lease agreement that for any reason does not qualify for treatment under section 47-2A527, subsection B, or is by sale or otherwise, the lessor may recover from the lessee as damages for a default of the type described in section 47-2A523, subsection A or subsection C, paragraph 1, or, if agreed, for other default of the lessee:
Terms Used In Arizona Laws 47-2A528
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Goods: means all things that are movable at the time of identification to the lease contract, or are fixtures (section 47-2A309), but the term does not include money, documents, instruments, accounts, chattel paper, general intangibles or minerals or the like, including oil and gas, before extraction. See Arizona Laws 47-2A103
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Lease: means a transfer of the right to possession and use of goods for a term in return for consideration, but a sale, including a sale on approval or a sale or return, or retention or creation of a security interest is not a lease. See Arizona Laws 47-2A103
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Lease agreement: means the bargain, with respect to the lease, of the lessor and the lessee in fact as found in their language or by implication from other circumstances including course of dealing or usage of trade or course of performance as provided in this article. See Arizona Laws 47-2A103
- Lessee: means a person who acquires the right to possession and use of goods under a lease. See Arizona Laws 47-2A103
- Lessor: means a person who transfers the right to possession and use of goods under a lease. See Arizona Laws 47-2A103
- Present value: means the amount as of a date certain of one or more sums payable in the future, discounted to the date certain. See Arizona Laws 47-2A103
1. Accrued and unpaid rent as of the date of default if the lessee has never taken possession of the goods, or, if the lessee has taken possession of the goods, as of the date the lessor repossesses the goods or an earlier date on which the lessee makes a tender of the goods to the lessor;
2. The present value as of the date determined under paragraph 1 of the total rent for the then remaining lease term of the original lease agreement minus the present value as of the same date of the market rent at the place where the goods are located computed for the same lease term; and
3. Any incidental damages allowed under section 47-2A530, less expenses saved in consequence of the lessee’s default.
B. If the measure of damages provided in subsection A of this section is inadequate to put a lessor in as good a position as performance would have, the measure of damages is the present value of the profit, including reasonable overhead, the lessor would have made from full performance by the lessee, together with any incidental damages allowed under section 47-2A530, due allowance for costs reasonably incurred and due credit for payments or proceeds of disposition.