Section 2-A-519. Lessee's Damages for Non-delivery, Repudiation, Default, and Breach of Warranty in Regard to Accepted Goods  


Latest version.
  • (1) Except as otherwise provided with respect to damages liquidated in
      the lease agreement (Section 2-A-504) or otherwise  determined  pursuant
      to  agreement of the parties (Section 1-102(3) and 2-A-503), if a lessee
      elects not to cover or a lessee elects to cover  and  the  cover  is  by
      lease  agreement,  whether  or  not  the  lease  agreement qualifies for
      treatment under Section 2-A-518(2), or is by purchase or otherwise,  the
      measure  of damages for non-delivery or repudiation by the lessor or for
      rejection or revocation of acceptance  by  the  lessee  is  the  present
      value,  as of the date of the default, of the then market rent minus the
      present value as of the same date of the original rent, computed for the
      remaining lease term of the  original  lease  agreement,  together  with
      incidental and consequential damages, less expenses saved in consequence
      of the lessor's default.
        (2)  Market rent is to be determined as of the place for tender or, in
      cases of rejection after arrival or revocation of acceptance, as of  the
      place of arrival.
        (3)  Except  as otherwise agreed, if the lessee has accepted goods and
      given notification (Section 2-A-516(3)),  the  measure  of  damages  for
      non-conforming  tender  or  delivery or other default by a lessor is the
      loss resulting in the  ordinary  course  of  events  from  the  lessor's
      default  as  determined  in  any manner that is reasonable together with
      incidental and consequential damages, less expenses saved in consequence
      of the lessor's default.
        (4) Except as otherwise agreed, the measure of damages for  breach  of
      warranty is the present value at the time and place of acceptance of the
      difference  between  the  value of the use of the goods accepted and the
      value if they had been as warranted for the lease term,  unless  special
      circumstances  show  proximate  damages  of a different amount, together
      with incidental  and  consequential  damages,  less  expenses  saved  in
      consequence of the lessor's default or breach of warranty.