(1) If a lessee wrongfully rejects or revokes acceptance of goods or
fails to make a payment when due or repudiates with respect to a part or
the whole, then, with respect to any goods involved, and with respect to
all of the goods if under an installment lease contract the value of the
whole lease contract is substantially impaired (Section 2-A-510), the
lessee is in default under the lease contract and the lessor may:
(a) cancel the lease contract (Section 2-A-505 (1));
(b) proceed respecting goods not identified to the lease contract
(Section 2-A-524);
(c) withhold delivery of the goods and take possession of goods
previously delivered (Section 2-A-525);
(d) stop delivery of the goods by any bailee (Section 2-A-526);
(e) dispose of the goods and recover damages (Section 2-A-527), or
retain the goods and recover damages (Section 2-A-528), or in a proper
case recover rent (Section 2-A-529);
(f) exercise any other rights or pursue any other remedies provided in
the lease contract.
(2) If a lessor does not fully exercise a right or obtain a remedy to
which the lessor is entitled under subsection (1), the lessor may
recover the loss resulting in the ordinary course of events from the
lessee's default as determined in any reasonable manner, together with
incidental damages, less expenses saved in consequence of the lessee's
default.
(3) If a lessee is otherwise in default under a lease contract, the
lessor may exercise the rights and pursue the remedies provided in the
lease contract, which may include a right to cancel the lease. In
addition, unless otherwise provided in the lease contract:
(a) if the default substantially impairs the value of the lease
contract to the lessor, the lessor may exercise the rights and pursue
the remedies provided under subsection (1) or (2); or
(b) if the default does not substantially impair the value of the
lease contract to the lessor, the lessor may recover as provided in
subsection (2).
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.