[Previous] [Next]
§12A-2A-528.
§12A-2A-528.
LESSOR'S DAMAGES FOR NONACCEPTANCE, FAILURE TO PAY, REPUDIATION,
OR OTHER DEFAULT
(1) Except as otherwise provided with respect to damages liquidated in
the lease agreement (Section 2A-504 of this title) or otherwise
determined pursuant to agreement of the parties (subsection (3) of
Section 1-102 and Section 2A-503 of this title), 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 subsection (2) of Section 2A-527 of this title, or
is by sale or otherwise, the lessor may recover from the lessee as
damages for a default of the type described in subsection (1) of
Section 2A-523 or paragraph (a) of subsection (3) of Section 2A-523,
or, if agreed, for other default of the lessee:
(i) 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,
(ii) the present value as of the date determined under clause (i) of
this subsection 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
(iii) any incidental damages allowed under Section 2A-530 of this
title, less expenses saved in consequence of the lessee's default.
(2) If the measure of damages provided in subsection (1) 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 2A-530 of this title, due allowance for
costs reasonably incurred and due credit for payments or proceeds of
disposition.
[Previous] [Next]