§ 554.13508 — Lessee’s remedies

Iowa § 554.13508

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 554: UNIFORM COMMERCIAL CODE

Text

1. If a lessor fails to deliver the goods in conformity to the lease contract (section
554.13509) or repudiates the lease contract (section 554.13402), or a lessee rightfully
rejects the goods (section 554.13509) or justifiably revokes acceptance of the goods (section
554.13517), 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 554.13510), the lessor is in default under the lease contract and the lessee
may:
a. cancel the lease contract (section 554.13505, subsection 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 554.13518 and 554.13520), or recover damages for
nondelivery (sections 554.13519 and 554.13520);
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 554.13522); or
b. in a proper case, obtain specific performance or replevy the goods (section 554.13521).
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 554.13519, subsection 3.
4. If a lessor has breached a warranty, whether express or implied, the lessee may recover
damages (section 554.13519, subsection 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 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 554.13527, subsection 5.
6. Subject to the provisions of section 554.13407, 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.