§ 26-1-2.1-518 — Cover; substitute goods

Indiana § 26-1-2.1-518

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 2.1: Leases

Text

(1) After a default by a lessor under the
lease contract of the type described in IC 26-1-2.1-508(1), or, if agreed,
after other default by the lessor, the lessee may cover by making any
purchase or lease of or contract to purchase or lease goods in
substitution for those due from the lessor.
(2) Except as otherwise provided with respect to damages liquidated
in the lease agreement (IC 26-1-2.1-504) or otherwise determined
pursuant to agreement of the parties (IC 26-1-1-102(3) and IC 26-1-2.1-503), if a lessee's cover is by lease agreement substantially
similar to the original lease agreement and the new lease agreement is
made in good faith and in a commercially reasonable manner, the
lessee may recover from the lessor as damages (i) the present value, as
of the date of the commencement of the term of the new lease
agreement of the rent under the new lease agreement applicable to that
period of the new lease term which is comparable to the then remaining
term of the original lease agreement minus the present value as of the
same date of the total rent for the then remaining lease term of the
original lease agreement, and (ii) any incidental or consequential
damages, less expenses saved in consequence of the lessor's default.
(3) If a lessee's cover is by lease agreement that for any reason does
not qualify for treatment under subsection (2), or is by purchase or
otherwise, the lessee may recover from the lessor as if the lessee had
elected not to cover and IC 26-1-2.1-519 governs.

Legislative History

As added by P.L.189-1991, SEC.3.