§ 41-02.1-56 — (2A-508) Lessee's remedies

North Dakota § 41-02.1-56

• Jurisdiction: North Dakota
• Title 41: Uniform Commercial Code
• Ch. 41-02.1: Leases

Text

1. If a lessor fails to deliver the goods in conformity to the lease contract (section
41-02.1-57) or repudiates the lease contract (section 41-02.1-43), or a lessee rightfully
rejects the goods (section 41-02.1-57) or justifiably revokes acceptance of the goods
(section 41-02.1-65), 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 41-02.1-58), the lessor is in default under the lease
contract and the lessee may:
a. Cancel the lease contract (subsection 1 of section 41-02.1-53).
b. Recover so much of the rent and security as has been paid as 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 41-02.1-66 and 41-02.1-68), or
recover damages for nondelivery (sections 41-02.1-67 and 41-02.1-68).
d. Exercise any other rights or 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 41-02.1-70); or
b. In a proper case, obtain specific performance or replevy the goods (section
41-02.1-80).
3. If a lessor is otherwise in default under a lease contract, the lessee may exercise the
rights and remedies provided in the lease contract, which may include a right to cancel
the lease, and under subsection 3 of section 41-02.1-67.
4. If a lessor has breached a warranty, whether express or implied, the lessee may
recover damages (subsection 4 of section 41-02.1-67).
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 the provisions of
subsection 5 of section 41-02.1-75.
6. Subject to the provisions of section 41-02.1-48, 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.