South Dakota Codified Laws
Chapter 02A - Leases
Section 57A-2A-508 - Lessee's remedies.

57A-2A-508. Lessee's remedies.
(1)If a lessor fails to deliver the goods in conformity to the lease contract (§57A-2A-509) or repudiates the lease contract (§57A-2A-402), or a lessee rightfully rejects the goods (§57A-2A-509) or justifiably revokes acceptance of the goods (§57A-2A-517), 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 (§57A-2A-510), the lessor is in default under the lease contract and the lessee may:
(a)Cancel the lease contract (§57A-2A-505(1));
(b)Recover so much of the rent and security as has been paid, but in the case of an installment lease contract the recovery is that which is just under the circumstances;
(c)Cover and recover damages as to all goods affected whether or not they have been identified to the lease contract (§§57A-2A-518 and 57A-2A-520), or recover damages for nondelivery (§§57A-2A-519 and 57A-2A-520).
(2)If a lessor fails to deliver the goods in conformity to the lease contract or repudiates the lease contract, the lessee may also:
(a)If the goods have been identified, recover them (§57A-2A-522); or
(b)In a proper case, obtain specific performance or replevy the goods (§57A-2A-521).
(3)If a lessor is otherwise in default under a lease contract, the lessee may exercise the rights and remedies provided in this chapter except to the extent that this chapter makes the right or remedy available only upon the occurrence of a default described in subsection (1) or (2).
(4)If a lessor has breached a warranty, whether express or implied, the lessee may recover damages (§57A-2A-519(4)).
(5)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 the provisions of §57A-2A-527(5).
(6)Subject to the provisions of §57A-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.

Source: SL 1989, ch 419, §1; SL 1990, ch 390, §17.

Structure South Dakota Codified Laws

South Dakota Codified Laws

Title 57A - Uniform Commercial Code

Chapter 02A - Leases

Section 57A-2A-101 - Short title.

Section 57A-2A-102 - Scope.

Section 57A-2A-103 - Definitions and index of definitions.

Section 57A-2A-104 - Leases subject to other statutes.

Section 57A-2A-105 - Territorial application of article to goods covered by certificate of title.

Section 57A-2A-106 - Limitation on power of parties to consumer lease to choose applicable law and judicial forum.

Section 57A-2A-107 - Waiver or renunciation of claim or right after default.

Section 57A-2A-108 - Unconscionability.

Section 57A-2A-201 - Statute of frauds.

Section 57A-2A-202 - Final written expression: parol or extrinsic evidence.

Section 57A-2A-203 - Seals inoperative.

Section 57A-2A-204 - Formation in general.

Section 57A-2A-205 - Firm offers.

Section 57A-2A-206 - Offer and acceptance in formation of lease contract.

Section 57A-2A-208 - Modification, rescission and waiver.

Section 57A-2A-209 - Lessee under finance lease as beneficiary of supply contract.

Section 57A-2A-210 - Express warranties.

Section 57A-2A-211 - Warranties against interference and against infringement; lessee's obligation against infringement.

Section 57A-2A-212 - Implied warranty of merchantability.

Section 57A-2A-213 - Implied warranty of fitness for particular purpose.

Section 57A-2A-214 - Exclusion or modification of warranties.

Section 57A-2A-215 - Cumulation and conflict of warranties express or implied.

Section 57A-2A-216 - Third party beneficiaries of express and implied warranties.

Section 57A-2A-217 - Identification.

Section 57A-2A-218 - Insurance and proceeds.

Section 57A-2A-219 - Risk of loss.

Section 57A-2A-220 - Effect of default on risk of loss.

Section 57A-2A-221 - Casualty to identified goods.

Section 57A-2A-301 - Enforceability of lease contract.

Section 57A-2A-302 - Title to and possession of goods.

Section 57A-2A-303 - Alienability of party's interest under lease contract or of lessor's residual interest in goods; delegation of performance; assignment of rights.

Section 57A-2A-304 - Subsequent lease of goods by lessor.

Section 57A-2A-305 - Sale or sublease of goods by lessee.

Section 57A-2A-306 - Priority of certain liens arising by operation of law.

Section 57A-2A-307 - Priority of liens arising by attachment or levy on, security interests in, and other claims to goods.

Section 57A-2A-308 - Special rights of creditors.

Section 57A-2A-309 - Lessor's and lessee's rights when goods become fixtures.

Section 57A-2A-310 - Lessor's and lessee's rights when goods become accessions.

Section 57A-2A-401 - Insecurity: adequate assurance of performance.

Section 57A-2A-402 - Anticipatory repudiation.

Section 57A-2A-403 - Retraction of anticipatory repudiation.

Section 57A-2A-404 - Substituted performance.

Section 57A-2A-405 - Excused performance.

Section 57A-2A-406 - Procedure on excused performance.

Section 57A-2A-407 - Irrevocable promises: finance leases.

Section 57A-2A-501 - Default procedure.

Section 57A-2A-502 - Notice after default.

Section 57A-2A-503 - Modification or impairment of rights and remedies.

Section 57A-2A-504 - Liquidation of damages.

Section 57A-2A-505 - Cancellation and termination and effect of cancellation, termination, rescission, or fraud on rights and remedies.

Section 57A-2A-506 - Statute of limitations.

Section 57A-2A-507 - Proof of market rent: time and place.

Section 57A-2A-508 - Lessee's remedies.

Section 57A-2A-509 - Lessee's rights on improper delivery--Rightful rejection.

Section 57A-2A-510 - Installment lease contracts: rejection and default.

Section 57A-2A-513 - Cure by lessor of improper delivery--Replacement.

Section 57A-2A-514 - Waiver of lessee's objections.

Section 57A-2A-515 - Acceptance of goods.

Section 57A-2A-516 - Effect of acceptance of goods--Notice of default--Burden of establishing default after acceptance--Notice of claim or litigation to person answerable over.

Section 57A-2A-517 - Revocation of acceptance of goods.

Section 57A-2A-518 - Cover--Substitute goods.

Section 57A-2A-519 - Lessee's damages for nondelivery, repudiation, default and breach of warranty in regard to accepted goods.

Section 57A-2A-520 - Lessee's incidental and consequential damages.

Section 57A-2A-521 - Lessee's right to specific performance or replevin.

Section 57A-2A-522 - Lessee's right to goods on lessor's insolvency.

Section 57A-2A-523 - Lessor's rights.

Section 57A-2A-524 - Lessor's right to identify goods to lease contract.

Section 57A-2A-525 - Lessor's right to possession of goods.

Section 57A-2A-526 - Lessor's stoppage of delivery in transit or otherwise.

Section 57A-2A-527 - Lessor's rights to dispose of goods.

Section 57A-2A-528 - Lessor's damages for nonacceptance or repudiation.

Section 57A-2A-529 - Lessor's action for a rent.

Section 57A-2A-530 - Lessor's incidental damages.

Section 57A-2A-530.1 - Lessor's right to recover for damage to residual interest.

Section 57A-2A-531 - Standing to sue third parties for injury to goods.