§ 41-02.1-66 — (2A-518) Cover - Substitute goods

North Dakota § 41-02.1-66

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

Text

1. After default by a lessor under the lease contract as described in subsection 1 of
section 41-02.1-56 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 (section 41-02.1-52) or determined by agreement of the parties (sections

41-01-16 and 41-02.1-51), 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 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 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 section 41-02.1-67
governs.