§ 2-A-518 — Cover; Substitute Goods

Section 2-A-518. Cover; Substitute Goods.\n (1) After a default by a lessor under the lease contract of the type\ndescribed in Section 2-A-508(1) or, if agreed, after other default by\nthe lessor, the lessee may cover by making any purchase or lease of or\ncontract to purchase or lease goods in substitution for those due from\nthe lessor.\n (2) Except as otherwise provided with respect to damages liquidated in\nthe lease agreement (Section 2-A-504) or otherwise determined pursuant\nto agreement of the parties (Sections 1--302 and 2-A-503), if a lessee's\ncover is by a lease agreement substantially similar to the original\nlease agreement and the new lease agreement is made in good faith and in\na commercially reasonable manner, the lessee may recover from the lessor\nas damages (a) the present value, as of the date of the commencement of\nthe term of the new lease agreement, of the rent under the new lease\nagreement applicable to that period of the new lease term which is\ncomparable to the then remaining term of the original lease agreement\nminus the present value as of the same date of the total rent for the\nthen remaining lease term of the original lease agreement, and (b) any\nincidental or consequential damages, less expenses saved in consequence\nof the lessor's default.\n (3) If the lessee's cover is by lease agreement that qualifies for\ntreatment under subsection (2), the lessee may elect to proceed under\nsubsection (2) or Section 2-A-519. If a lessee's cover is by lease\nagreement that for any reason does not qualify for treatment under\nsubsection (2), or is by purchase or otherwise, the lessee may recover\nfrom the lessor as if the lessee had elected not to cover.\n