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355.2A-508 Lessee's remedies.
(1)
(2)
(3)
(4)
(5)
(6)
If a lessor fails to deliver the goods in conformity to the lease contract (KRS
355.2A-509) or repudiates the lease contract (KRS 355.2A-402), or a lessee
rightfully rejects the goods (KRS 355.2A-509) or justifiably revokes acceptance of
the goods (KRS 355.2A-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 (KRS 355.2A-510), the lessor is in
default under the lease contract and the lessee may:
(a) Cancel the lease contract (subsection (1) of KRS 355.2A-505);
(b) Recover so much of the rent and security as has been paid and 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 (KRS 355.2A-518 and 355.2A-520), or
recover damages for nondelivery (KRS 355.2A-519 and 355.2A-520);
(d) Exercise any other rights or pursue any other remedies provided in the lease
contract.
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 (KRS 355.2A-522); or
(b) In a proper case, obtain specific performance or replevy the goods (KRS
355.2A-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 KRS 355.2A-519(3).
If a lessor has breached a warranty, whether express or implied, the lessee may
recover damages (subsection (4) of KRS 355.2A-519).
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 subsection (5) of
KRS 355.2A-527.
Subject to the provisions of KRS 355.2A-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.
Effective: January 1, 1993
History: Amended 1992 Ky. Acts ch. 116, sec. 13, effective January 1, 1993 -- Created
1990 Ky. Acts ch. 363, sec. 55, effective January 1, 1991.
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