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Can you summarize NHRS 382-A:2A-518?
UNIFORM COMMERCIAL CODE > Cover; Substitute Goods.
Short Summary
This legal document, part of the New Hampshire Revised Statutes under the Uniform Commercial Code, specifically Chapter 382-A, governs the concept of substitute goods in lease contracts. It outlines the rights and options available to lessees in the event of a default by the lessor. The document states that after a default, the lessee has the option to cover by making a purchase or lease of goods to substitute for those originally due from the lessor. If the lessee’s cover is by a lease agreement that is 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 the cover is by purchase or otherwise, the lessee may recover from the lessor as if the lessee had elected not to cover, with Section 2A-519 governing the recovery process. The document provides clarity on the rights and remedies available to lessees in the context of substitute goods in lease contracts.
Whom does it apply to?
Lessees and lessors involved in lease contracts
What does it govern?
Substitute Goods
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
New Hampshire