2021 Tennessee Code
Part 5 - Default
§ 47-2A-508. Lessee's Remedies

If a lessor fails to deliver the goods in conformity to the lease contract or repudiates the lease contract, the lessee may also:
if the goods have been identified, recover them (§ 47-2A-522); or
in a proper case, obtain specific performance or replevy the goods (§ 47-2A-521).
If a lessor is otherwise in default under a lease contract, the lessee may exercise the rights and pursue the remedies provided in the lease contract, which may include a right to cancel the lease, and in § 47-2A-519(3).
If a lessor has breached a warranty, whether express or implied, the lessee may recover damages (§ 47-2A-519(4)).
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 § 47-2A-527(5).
Subject to the provisions of § 47-2A-407, 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.