§ 554.13519 — Lessee’s damages for nondelivery, repudiation, default, and breach of warranty in regard to accepted goods

Iowa § 554.13519

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

Text

warranty in regard to accepted goods.
1. Except as otherwise provided with respect to damages liquidated in the lease
agreement (section 554.13504) or otherwise determined pursuant to agreement of the parties
(sections 554.1302 and 554.13503), if a lessee elects not to cover or a lessee elects to cover
and the cover is by lease agreement that for any reason does not qualify for treatment under
section 554.13518, subsection 2, or is by purchase or otherwise, the measure of damages
for nondelivery or repudiation by the lessor or for rejection or revocation of acceptance by
the lessee is the present value, as of the date of the default, of the then market rent minus
the present value as of the same date of the original rent, computed for the remaining lease
term of the original lease agreement, together with incidental and consequential damages,
less expenses saved in consequence of the lessor’s default.
2. Market rent is to be determined as of the place for tender or, in cases of rejection after
arrival or revocation of acceptance, as of the place of arrival.
3. Except as otherwise agreed, if the lessee has accepted goods and given notification
(section 554.13516, subsection 3), the measure of damages for nonconforming tender or
delivery or other default by a lessor is the loss resulting in the ordinary course of events from
the lessor’s default as determined in any manner that is reasonable together with incidental
and consequential damages, less expenses saved in consequence of the lessor’s default.
4. Except as otherwise agreed, the measure of damages for breach of warranty is the
present value at the time and place of acceptance of the difference between the value of the
use of the goods accepted and the value if they had been as warranted for the lease term,
unless special circumstances show proximate damages of a different amount, together with
incidental and consequential damages, less expenses saved in consequence of the lessor’s
default or breach of warranty.