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Can you summarize MNST 336.2A-518?
UNIFORM COMMERCIAL CODE > COVER; SUBSTITUTE GOODS.
Short Summary
This legal document, part of the Minnesota Statutes under the Uniform Commercial Code, pertains to the concept of substitute goods in the event of default by a lessor under a lease contract. It states that after a default by a lessor, the lessee has the option to cover the default by making a purchase or lease of goods in substitution for those due from the lessor. If the lessee’s cover is by a lease agreement substantially similar to the original lease agreement and made in good faith and in a commercially reasonable manner, the lessee may recover damages from the lessor. These damages include the present value of the rent under the new lease agreement applicable to the comparable period of the remaining term of the original lease agreement, minus the present value of the total rent for the remaining lease term of the original agreement. Additionally, the lessee may recover any incidental or consequential damages, less expenses saved due to the lessor’s default. If the lessee’s cover does not qualify for treatment under the aforementioned conditions, or if it is by purchase or otherwise, the lessee may recover damages as if they had elected not to cover, and section 336.2A-519 governs. No specific penalties are mentioned in this document.
Whom does it apply to?
Lessees and lessors involved in lease contracts
What does it govern?
Substitute goods in the event of default by a lessor under a lease contract
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Minnesota