Indiana § 26-1-2.1-516 Effect of acceptance of goods; notice of default; burden of establishing

Indiana Statutes

§ 26-1-2.1-516 — Effect of acceptance of goods; notice of default; burden of establishing

Indiana § 26-1-2.1-516

Title 26COMMERCIAL LAW

Art. 1UNIFORM COMMERCIAL CODE

Ch. 2.1Leases

This text of Indiana § 26-1-2.1-516 (Effect of acceptance of goods; notice of default; burden of establishing) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 26-1-2.1-516 (2026).

Text

(1)A lessee must pay rent for any goods accepted in accordance with the lease contract, with due allowance for goods rightfully rejected or not delivered.

(2)A lessee's acceptance of goods precludes rejection of the goods accepted. In the case of a finance lease, if made with knowledge of a nonconformity, acceptance cannot be revoked because of it. In any other case, if made with knowledge of a nonconformity, acceptance cannot be revoked because of it unless the acceptance was on the reasonable assumption that the nonconformity would be seasonably cured. Acceptance does not of itself impair any other remedy provided by IC 26-1-2.1 or the lease agreement for nonconformity.

(3)If a tender has been accepted:

(a)within a reasonable time after the lessee discovers or should have discovered

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(1) A lessee must pay rent for any goods
accepted in accordance with the lease contract, with due allowance for
goods rightfully rejected or not delivered.
(2) A lessee's acceptance of goods precludes rejection of the goods
accepted. In the case of a finance lease, if made with knowledge of a
nonconformity, acceptance cannot be revoked because of it. In any
other case, if made with knowledge of a nonconformity, acceptance
cannot be revoked because of it unless the acceptance was on the
reasonable assumption that the nonconformity would be seasonably
cured. Acceptance does not of itself impair any other remedy provided
by IC 26-1-2.1 or the lease agreement for nonconformity.
(3) If a tender has been accepted:
(a) within a reasonable time after the lessee discovers or should
have discovered any default, the lessee shall notify the lessor and
the supplier, if any, or be barred from any remedy against the
party not notified;
(b) except in the case of a consumer lease, within a reasonable
time after the lessee receives notice of litigation for infringement
or the like (IC 26-1-2.1-211) the lessee shall notify the lessor or
be barred from any remedy over for liability established by the
litigation; and
(c) the burden is on the lessee to establish any default.
(4) If a lessee is sued for breach of a warranty or other obligation for
which a lessor or a supplier is answerable over the following apply:
(a) The lessee may give the lessor or the supplier, or both, written
notice of the litigation. If the notice states that the person notified
may come in and defend and that if the person notified does not
do so that person will be bound in any action against that person
by the lessee by any determination of fact common to the two (2)
litigations, then unless the person notified after seasonable receipt
of the notice does come in and defend that person is so bound.
(b) The lessor or the supplier may demand in writing that the
lessee turn over control of the litigation including settlement if the
claim is one for infringement or the like (IC 26-1-2.1-211) or else
be barred from any remedy over. If the demand states that the
lessor or the supplier agrees to bear all expense and to satisfy any
adverse judgment, then unless the lessee after seasonable receipt
of the demand does turn over control the lessee is so barred.
(5) Subsections (3) and (4) apply to any obligation of a lessee to
hold the lessor or the supplier harmless against infringement or the like
(IC 26-1-2.1-211).