(1) After a default by a lessor under the lease contract of the type described in § 4-2A-508(1), 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 (§ 4-2A-504) or otherwise determined pursuant to agreement of the parties (§§ 4-1-302 and 4-2A-503), if a lessee's cover is by a 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 (i) 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 (ii) 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 § 4-2A-519 governs.
Structure Arkansas Code
Title 4 - Business and Commercial Law
Subtitle 1 - Uniform Commercial Code
§ 4-2A-501. Default — Procedure
§ 4-2A-502. Notice after default
§ 4-2A-503. Modification or impairment of rights and remedies
§ 4-2A-504. Liquidation of damages
§ 4-2A-506. Statute of limitations
§ 4-2A-507. Proof of market rent — Time and place
§ 4-2A-509. Lessee's rights on improper delivery — Rightful rejection
§ 4-2A-510. Installment lease contracts — Rejection and default
§ 4-2A-511. Merchant lessee's duties as to rightfully rejected goods
§ 4-2A-512. Lessee's duties as to rightfully rejected goods
§ 4-2A-513. Cure by lessor of improper tender or delivery — Replacement
§ 4-2A-514. Waiver of lessee's objections
§ 4-2A-515. Acceptance of goods
§ 4-2A-517. Revocation of acceptance of goods
§ 4-2A-518. Cover — Substitute goods
§ 4-2A-520. Lessee's incidental and consequential damages
§ 4-2A-521. Lessee's right to specific performance or replevin
§ 4-2A-522. Lessee's right to goods on lessor's insolvency
§ 4-2A-524. Lessor's right to identify goods to lease contract
§ 4-2A-525. Lessor's right to possession of goods
§ 4-2A-526. Lessor's stoppage of delivery in transit or otherwise
§ 4-2A-527. Lessor's rights to dispose of goods
§ 4-2A-528. Lessor's damages for non-acceptance, failure to pay, repudiation, or other default
§ 4-2A-529. Lessor's action for the rent
§ 4-2A-530. Lessor's incidental damages
§ 4-2A-531. Standing to sue third parties for injury to goods