§ 25-2A-508. Lessee's remedies. - North Carolina Statutes

B.Default by Lessor.

§ 25‑2A‑508. Lessee's remedies.

(1)        If a lessor failsto deliver the goods in conformity to the lease contract (G.S. 25‑2A‑509)or repudiates the lease contract (G.S. 25‑2A‑402), or a lesseerightfully rejects the goods (G.S. 25‑2A‑509) or justifiablyrevokes acceptance of the goods (G.S. 25‑2A‑517), then with respectto any goods involved, and with respect to all of the goods if under aninstallment lease contract, the value of the whole lease contract issubstantially impaired (G.S. 25‑2A‑510), the lessor is in defaultunder the lease contract, and the lessee may:

(a)        cancel the leasecontract (G.S. 25‑2A‑505(1));

(b)        recover so much ofthe rent and security as has been paid and is just under the circumstances;

(c)        cover and recover damagesas to all goods affected whether or not they have been identified to the leasecontract (G.S. 25‑2A‑518 and G.S. 25‑2A‑520), orrecover damages for nondelivery (G.S. 25‑2A‑519 and G.S. 25‑2A‑520);

(d)        exercise any otherrights or pursue any other remedies provided in the lease contract.

(2)        If a lessor failsto deliver the goods in conformity to the lease contract or repudiates thelease contract, the lessee may also:

(a)        if the goods havebeen identified, recover them (G.S. 25‑2A‑522); or

(b)        in a proper case,obtain specific performance or replevy the goods (G.S. 25‑2A‑521).

(3)        If a lessor isotherwise in default under a lease contract, the lessee may exercise the rightsand pursue the remedies provided in the lease contract, which may include a rightto cancel the lease, and in G.S. 25‑2A‑519(3).

(4)        If a lessor hasbreached a warranty, whether express or implied, the lessee may recover damages(G.S. 25‑2A‑519(4)).

(5)        On rightfulrejection or justifiable revocation of acceptance, a lessee has a securityinterest in goods in the lessee's possession or control for any rent andsecurity that has been paid and any expenses reasonably incurred in theirinspection, receipt, transportation, and care and custody and may hold thosegoods and dispose of them in good faith and in a commercially reasonablemanner, subject to G.S. 25‑2A‑527(5).  A lessee who has rightfullyrejected the goods, or justifiably revoked acceptance of the goods, shallaccount to the lessor for any excess over the amount of the lessee's securityinterest.

(6)        Subject to theprovisions of G.S. 25‑2A‑407, a lessee, on notifying the lessor ofthe lessee's intention to do so, may deduct all or any part of the damagesresulting from any default under the lease contract from any part of the rentstill due under the same lease contract. (1993, c. 463, s. 1.)