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2006 Minnesota Statutes

This is a historical version of this statute section. Also view the most recent published version.

336.2A-518 COVER; SUBSTITUTE GOODS.
(1) After a default by a lessor under the lease contract of the type described in section
336.2A-508(1), or, if agreed, after other default by the lessor, the lessee may cover by making
any purchase or lease of or contract to purchase or lease goods in substitution for those due
from the lessor.
(2) Except as otherwise provided with respect to damages liquidated in the lease agreement
(section 336.2A-504) or otherwise determined pursuant to agreement of the parties (sections
336.1-302 and 336.2A-503), if a lessee's cover is by a lease agreement substantially similar to the
original lease agreement and the new lease agreement is made in good faith and in a commercially
reasonable manner, the lessee may recover from the lessor as damages (i) the present value, as of
the date of the commencement of the term of the new lease agreement, of the rent under the new
lease agreement applicable to that period of the new lease term which is comparable to the then
remaining term of the original lease agreement minus the present value as of the same date of the
total rent for the then remaining lease term of the original lease agreement, and (ii) any incidental
or consequential damages, less expenses saved in consequence of the lessor's default.
(3) If a lessee's cover is by lease agreement that for any reason does not qualify for treatment
under subsection (2), or is by purchase or otherwise, the lessee may recover from the lessor as if
the lessee had elected not to cover and section 336.2A-519 governs.
History: 1989 c 232 art 1 s 2A-518; 1991 c 171 art 1 s 15; 2004 c 162 art 2 s 5

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