2018 New Mexico Statutes
Chapter 55 - Uniform Commercial Code
Article 2A - Leases
Section 55-2A-520 - Lessee's incidental and consequential damages.
(1) Incidental damages resulting from a lessor's default include expenses reasonably incurred in inspection, receipt, transportation and care and custody of goods rightfully rejected or goods the acceptance of which is justifiably revoked, any commercially reasonable charges, expenses or commissions in connection with effecting cover, and any other reasonable expense incident to the default.
(2) Consequential damages resulting from a lessor's default include:
(a) any loss resulting from general or particular requirements and needs of which the lessor at the time of contracting had reason to know and which could not reasonably be prevented by cover or otherwise; and
(b) injury to person or property proximately resulting from any breach of warranty.
History: 1978 Comp., § 55-2A-520, enacted by Laws 1992, ch. 114, § 75.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source: — Section 2-715 [55-2-715 NMSA 1978].
Changes: — Revised to reflect leasing terminology and practices.
Purposes: — Subsection (1), a revised version of the provisions of Section 2-715(1) [55-2-715 NMSA 1978], lists some examples of incidental damages resulting from a lessor's default; the list is not exhaustive. Subsection (1) makes clear that it applies not only to rightful rejection, but also to justifiable revocation.
Subsection (2), a revised version of the provisions of Section 2-715(2) [55-2-715 NMSA 1978], lists some examples of consequential damages resulting from a lessor's default; the list is not exhaustive.
Cross References: — Section 2-715 [55-2-715 NMSA 1978].
"Goods". Section 2A-103(1)(h) [55-2A-103 NMSA 1978].
"Knows". Section 1-201(25) [55-1-201 NMSA 1978].
"Lessee". Section 2A-103(1)(n) [55-2A-103 NMSA 1978].
"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].
"Person". Section 1-201(30) [55-1-201 NMSA 1978].
"Receipt". Section 2-103(1)(c) [55-2-103 NMSA 1978].
Effective dates. — Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 75 effective July 1, 1992.
