400.2A-518. Cover--substitute goods. - Missouri Statutes

Cover--substitute goods.

400.2A-518. (1) After default by a lessor under the leasecontract of the type described in section 400.2A-508(1), or, ifagreed, after other default by the lessor, the lessee may coverby making any purchase or lease of or contract to purchase orlease goods in substitution for those due from the lessor.

(2) Except as otherwise provided with respect to damagesliquidated in the lease agreement (Section 400.2A-504) orotherwise determined pursuant to agreement of the parties(Sections 400.1-102(3) and 400.2A-503), if a lessee's cover is bya lease agreement substantially similar to the original leaseagreement and the new lease agreement is made in good faith andin a commercially reasonable manner, the lessee may recover fromthe lessor as damages (i) the present value, as of the date ofthe commencement of the term of the new lease agreement, of therent under the new lease agreement applicable to that period ofthe new lease term which is comparable to the then remaining termof the original lease agreement minus the present value as of thesame date of the total rent for the then remaining lease term ofthe original lease agreement, and (ii) any incidental orconsequential damages, less expenses saved in consequence of thelessor's default.

(3) If a lessee's cover is by lease agreement that for anyreason does not qualify for treatment under subsection (2), or isby purchase or otherwise, the lessee may recover from the lessoras if the lessee had elected not to cover and section 400.2A-519governs.

(L. 1992 S.B. 448)