Connecticut General Statutes 42a-2A-718 – Lessor’s right to identify goods to lease contract despite default or to salvage unfinished goods
(a) Upon default by the lessee under the lease contract of the type described in subsection (a) or subdivision (1) of subsection (c) of § 42a-2A-716 or, if agreed, after other default by the lessee, the lessor may:
Terms Used In Connecticut General Statutes 42a-2A-718
- Contract: A legal written agreement that becomes binding when signed.
- 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
(1) Identify to the lease contract conforming goods not already identified if they are in the lessor’s or supplier’s possession or control at the time the lessor learned of the default; and
(2) Dispose of goods that are shown to have been intended for the particular lease contract even if such goods are unfinished.
(b) If goods are unfinished at the time of default, an aggrieved lessor or the supplier, in the exercise of reasonable commercial judgment for the purposes of minimizing loss and of effective realization, may complete the manufacture and wholly identify the goods to the lease contract, cease manufacture and lease, sell or otherwise dispose of the goods for scrap or salvage value, or proceed in any other reasonable manner.