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Articles
A Lessor’s Damages For A Lessee’s Default
July 21, 2004
What rights to damages does a lessor have when a lessee defaults on a lease agreement for personal property and the damages are not otherwise covered by a liquidated damages provision in the lease? Do those rights depend on whether the lessor retains the goods or disposes of the goods? If the lessor disposes of the goods, do those rights depend on whether the disposition was by lease, by sale or by some other method? This article discusses Sections 2A-527 ("Lessor’s Rights to Dispose of Goods") and 2A-528 ("Lessor’s Damages for Non-Acceptance, Failure to Pay, Repudiation or Other Default") of the Uniform Commercial Code, providing the starting point from which one can begin to answer these questions.
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