2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 2A5 - Default
Section 2A508 - Lessee's remedies

                               SUBCHAPTER B
                            DEFAULT BY LESSOR

     Sec.
     2A508.  Lessee's remedies.
     2A509.  Lessee's rights on improper delivery; rightful
                rejection.
     2A510.  Installment lease contracts: rejection and default.
     2A511.  Merchant lessee's duties as to rightfully rejected
                goods.
     2A512.  Lessee's duties as to rightfully rejected goods.
     2A513.  Cure by lessor of improper tender or delivery;
                replacement.
     2A514.  Waiver of lessee's objections.
     2A515.  Acceptance of goods.
     2A516.  Effect of acceptance of goods; notice of default;
                burden of establishing default after acceptance;
                notice of claim or litigation to person answerable
                over.
     2A517.  Revocation of acceptance of goods.
     2A518.  Cover; substitute goods.
     2A519.  Lessee's damages for nondelivery, repudiation, default
                and breach of warranty in regard to accepted goods.
     2A520.  Lessee's incidental and consequential damages.
     2A521.  Lessee's right to specific performance or replevin.
     2A522.  Lessee's right to goods on lessor's insolvency.
     § 2A508.  Lessee's remedies.
        (a)  General rule.--If a lessor fails to deliver the goods in
     conformity to the lease contract (section 2A509) or repudiates
     the lease contract (section 2A402), or a lessee rightfully
     rejects the goods (section 2A509) or justifiably revokes
     acceptance of the goods (section 2A517), 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 2A510), the lessor
     is in default under the lease contract and the lessee may:
            (1)  cancel the lease contract (section 2A505(a));
            (2)  recover so much of the rent and security as has been
        paid and is just under the circumstances;
            (3)  cover and recover damages as to all goods affected,
        whether or not they have been identified to the lease
        contract (sections 2A518 and 2A520), or recover damages for
        nondelivery (sections 2A519 and 2A520); and
            (4)  exercise any other rights or pursue any other
        remedies provided in the lease contract.
        (b)  Recovery of nondelivered goods.--If a lessor fails to
     deliver the goods in conformity to the lease contract or
     repudiates the lease contract, the lessee may also:
            (1)  if the goods have been identified, recover them
        (section 2A522); or
            (2)  in a proper case, obtain specific performance or
        replevy the goods (section 2A521).
        (c)  Rights and remedies for other defaults.--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 section 2A519(c) (relating to lessee's damages for
     nondelivery, repudiation, default and breach of warranty in
     regard to accepted goods).
        (d)  Damages for breach of warranty.--If a lessor has
     breached a warranty, whether express or implied, the lessee may
     recover damages (section 2A519(d)).
        (e)  Security interest in goods in lessee's possession.--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 section 2A527(e) (relating to
     lessor's rights to dispose of goods).
        (f)  Deduction of damages from rent due.--Subject to the
     provisions of section 2A407 (relating to irrevocable promises:
     finance leases), 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.

        Cross References.  Section 2A508 is referred to in sections
     2A511, 2A512, 2A518, 2A527, 9102, 9109, 9110, 9309, 9325 of this
     title.