(1) A lessee must pay rent for any goods accepted in accordance with
the lease contract, with due allowance for goods rightfully rejected or
not delivered.
(2) A lessee's acceptance of goods precludes rejection of the goods
accepted. In the case of a finance lease, other than a consumer lease in
which the supplier assisted in the preparation of the lease contract or
participated in negotiating the terms of the lease contract with the
lessor, if made with knowledge of a nonconformity, acceptance cannot be
revoked because of it. In any other case, if made with knowledge of a
nonconformity, acceptance cannot be revoked because of it unless the
acceptance was on the reasonable assumption that the nonconformity would
be seasonably cured. Acceptance does not of itself impair any other
remedy provided by this Article or the lease agreement for
nonconformity.
(3) If a tender has been accepted:
(a) within a reasonable time after the lessee discovers or should
have discovered any default, the lessee shall notify the
lessor and the supplier, if any, or be barred from any remedy
against the party not notified;
(b) except in the case of a consumer lease, within a reasonable
time after the lessee receives notice of litigation for
infringement or the like (Section 2-A-211) the lessee shall
notify the lessor or be barred from any remedy over for
liability established by the litigation; and
(c) the burden is on the lessee to establish any default.
(4) If a lessee is sued for breach of a warranty or other obligation
for which a lessor or a supplier is answerable over the following apply:
(a) the lessee may give the lessor or the supplier, or both,
written notice of the litigation. If the notice states that
the person notified may come in and defend and that if the
person notified does not do so that person will be bound in
any action against that person by the lessee by any
determination of fact common to the two litigations, then
unless the person notified after seasonable receipt of the
notice does come in and defend that person is so bound; and
(b) the lessor or the supplier may demand in writing that the
lessee turn over control of the litigation including
settlement if the claim is one for infringement or the like
(5) Subsections (3) and (4) apply to any obligation of a lessee to
hold the lessor or the supplier harmless against infringement or the
like (Section 2-A-211).
Structure New York Laws
2-A-502 - Notice After Default.
2-A-503 - Modification or Impairment of Rights and Remedies.
2-A-504 - Liquidation of Damages.
2-A-506 - Statute of Limitations.
2-A-507 - Proof of Market Rent: Time and Place.
2-A-509 - Lessee's Rights on Improper Delivery: Rightful Rejection.
2-A-510 - Installment Lease Contracts: Rejection and Default.
2-A-511 - Merchant Lessee's Duties as to Rightfully Rejected Goods.
2-A-512 - Lessee's Duties as to Rightfully Rejected Goods.
2-A-513 - Cure by Lessor of Improper Tender or Delivery; Replacement.
2-A-514 - Waiver of Lessee's Objections.
2-A-515 - Acceptance of Goods.
2-A-517 - Revocation of Acceptance of Goods.
2-A-518 - Cover; Substitute Goods.
2-A-520 - Lessee's Incidental and Consequential Damages.
2-A-521 - Lessee's Right to Specific Performance or Replevin.
2-A-522 - Lessee's Right to Goods on Lessor's Insolvency.
2-A-524 - Lessor's Right to Identify Goods to Lease Contract.
2-A-525 - Lessor's Right to Possession of Goods.
2-A-526 - Lessor's Stoppage of Delivery in Transit or Otherwise.
2-A-527 - Lessor's Rights to Dispose of Goods.
2-A-528 - Lessor's Damages for Non-Acceptance, Failure to Pay, Repudiation, or Other Default.
2-A-529 - Lessor's Action for the Rent.
2-A-530 - Lessor's Incidental Damages.
2-A-531 - Standing to Sue Third Parties for Injury to Goods.