N.Y. Uniform Commercial Code 2-A-508 – Lessee's Remedies
Section 2-A-508. Lessee's Remedies.
Terms Used In N.Y. Uniform Commercial Code 2-A-508
- Contract: A legal written agreement that becomes binding when signed.
- 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 2-A-309), 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 N.Y. Uniform Commercial Code 2-A-103 - Installment lease contract: means a lease contract that
authorizes or requires the delivery of goods in separate lots
to be separately accepted, even though the lease contract
contains a clause "each delivery is a separate lease" or its
equivalent. See N.Y. Uniform Commercial Code 2-A-103 - 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 N.Y. Uniform Commercial Code 2-A-103 - 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 contract: means the total legal obligation that
results from the lease agreement as affected by this Article
and any other applicable rules of law. See N.Y. Uniform Commercial Code 2-A-103 - Lessee: means a person who acquires the right to possession
and use of goods under a lease. See N.Y. Uniform Commercial Code 2-A-103 - Lessor: means a person who transfers the right to possession
and use of goods under a lease. See N.Y. Uniform Commercial Code 2-A-103
(1) If a lessor fails to deliver the goods in conformity to the lease contract (Section 2-A-509) or repudiates the lease contract (Section 2-A-402), or a lessee rightfully rejects the goods (Section 2-A-509) or justifiably revokes acceptance of the goods (Section 2-A-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 2-A-510), the lessor is in default under the lease contract and the lessee may:
(a) cancel the lease contract (Section 2-A-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 2-A-518 and 2-A-520), or recover damages for nondelivery (Sections 2-A-519 and 2-A-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 2-A-522); or
(b) in a proper case, obtain specific performance or replevy the goods (Section 2-A-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 2-A-519(3).
(4) If a lessor has breached a warranty, whether express or implied, the lessee may recover damages (Section 2-A-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 interest 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 2-A-527(5).
(6) Subject to the provisions of Section 2-A-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.