§ 26-1-2.1-528 — Lessor's damages for nonacceptance or repudiation

Indiana § 26-1-2.1-528

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

Text

(1) 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 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 IC 26-1-2.1-527(2), or is by sale or otherwise, the lessor may
recover from the lessee as damages for a default of the type described
in IC 26-1-2.1-523(1) or IC 26-1-2.1-523(3)(a), or, if agreed, for other
default of the lease, (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 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 IC 26-1-2.1-530, less expenses saved in consequence of the lessee's
default.
(2) If the measure of damages provided in subsection (1) 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 IC 26-1-2.1-530, due allowance for costs reasonably
incurred and due credit for payments or proceeds of disposition.

Legislative History

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