Section 2-A-528. Lessor's Damages for Non-acceptance, Failure to Pay, Repudiation, or Other Default  


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  • (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 (Sections 1-102(3) and 2-A-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  whether  or  not  the  lease
      agreement  qualifies  for  treatment  under Section 2-A-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 Section 2-A-523(1) or 2-A-523 (3)(a),
      or, if agreed, for other default of the lessee, (a) 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, (b) the present
      value as of the date determined under clause (a) 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 (c) any
      incidental damages allowed under Section 2-A-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  Section   2-A-530,  due allowance for costs reasonably incurred and due credit for
      payments or proceeds of disposition.