| (1) |
Except as otherwise provided with respect to damages liquidated in the lease agreement as provided in Section 70A-2a-504 or otherwise determined pursuant to agreement of the parties as provided in Sections 70A-1a-302 and 70A-2a-503, if a lessor elects to retain the goods or a lessor elects to dispose of the goods and the disposition is by lease agreement whether or not the lease agreement qualifies for treatment under Subsection 70A-2a-527(2), or is by sale or otherwise, the lessor may recover from the lessee as damages for a default of the type described in Section 70A-2a-523 or, if agreed, for any other default of the lessee:
Terms Used In Utah Code 70A-2a-528- 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. See Utah Code 70A-2a-103
- Lease: means a transfer of the right to possession and use of goods for a term, in return for consideration. See Utah Code 70A-2a-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
- Lessee: means a person who acquires the right to possession and use of goods under a lease. See Utah Code 70A-2a-103
- Lessor: means a person who transfers the right to possession and use of goods under a lease. See Utah Code 70A-2a-103
- 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 Utah Code 70A-2a-103
| (a) |
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 on which the lessee makes a tender of the goods to the lessor; |
| (b) |
the present value as of the date determined under Subsection (1)(a) of default of the total rent for the then remaining lease term of the original lease agreement and 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 |
| (c) |
any incidental damages allowed under Section 70A-2a-530, less expenses saved in consequence of the lessee’s default. |
|
| (2) |
If the measure of damages provided in Subsection (1) 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 70A-2a-530, due allowance for costs reasonably incurred and due credit for payments or proceeds of disposition. |
Amended by Chapter 272, 2007 General Session
