Texas Business and Commerce Code 2A.511 – Merchant Lessee’s Duties as to Rightfully Rejected Goods
Current as of: 2024 | Check for updates
|
Other versions
Terms Used In Texas Business and Commerce Code 2A.511
- Goods: means all things that are moveable at the time of identification to the lease contract, or are fixtures (Section Texas Business and Commerce Code 2A.103
- Lessee: means a person who acquires the right to possession and use of goods under a lease. See Texas Business and Commerce Code 2A.103
- Lessor: means a person who transfers the right to possession and use of goods under a lease. See Texas Business and Commerce Code 2A.103
- Merchant lessee: means a lessee that is a merchant with respect to goods of the kind subject to the lease. See Texas Business and Commerce Code 2A.103
- Supplier: means a person from whom a lessor buys or leases goods to be leased under a finance lease. See Texas Business and Commerce Code 2A.103
Subject to any security interest of a lessee (Section 2A.508(e)), if a lessor or a supplier has no agent or place of business at the market of rejection, a merchant lessee, after rejection of goods in the lessee’s possession or control, shall follow any reasonable instructions received from the lessor or the supplier with respect to the goods. In the absence of those instructions, a merchant lessee shall make reasonable efforts to sell, lease, or otherwise dispose of the goods for the lessor’s account if they threaten to decline in value speedily. Instructions are not reasonable if on demand indemnity for expenses is not forthcoming.