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355.2A-519 Lessee's damages for nondelivery, repudiation, default, and breach of
warranty in regard to accepted goods.
(1)
(2)
(3)
(4)
Except as otherwise provided with respect to damages liquidated in the lease
agreement (KRS 355.2A-504) or otherwise determined pursuant to agreement of the
parties (KRS 355.1-302 and 355.2A-503), if a lessee elects not to cover or a lessee
elects to cover and the cover is by lease agreement that for any reason does not
qualify for treatment under subsection (2) of KRS 355.2A-518, or is by purchase or
otherwise, the measure of damages for nondelivery or repudiation by the lessor or
for rejection or revocation of acceptance by the lessee is the present value, as of the
date of the default, of the then market rent minus the present value as of the same
date of the original rent, computed for the remaining lease term of the original lease
agreement, together with incidental and consequential damages, less expenses saved
in consequence of the lessor's default.
Market rent is to be determined as of the place for tender or, in cases of rejection
after arrival or revocation of acceptance, as of the place of arrival.
Except as otherwise agreed, if the lessee has accepted goods and given notification
(KRS 355.2A-516(3)), the measure of damages for nonconforming tender or
delivery or other default by a lessor is the loss resulting in the ordinary course of
events from the lessor's default as determined in any manner that is reasonable
together with incidental and consequential damages, less expenses saved in
consequence of the lessor's default.
Except as otherwise agreed, the measure of damages for breach of warranty is the
present value at the time and place of acceptance of the difference between the
value of the use of the goods accepted and the value if they had been as warranted
for the lease term, unless special circumstances show proximate damages of a
different amount, together with incidental and consequential damages, less expenses
saved in consequence of the lessor's default or breach of warranty.
Effective: July 12, 2006
History: Amended 2006 Ky. Acts ch. 242, sec. 30, effective July 12, 2006. -- Amended
1992 Ky. Acts ch. 116, sec. 17, effective January 1, 1993. -- Created 1990 Ky. Acts
ch. 363, sec. 66, effective January 1, 1991.
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