Section 400.2A-221

Title XXVI TRADE AND COMMERCE

Chapter 400

Effective - 28 Aug 1992   

  400.2A-221.  Casualty to identified goods. — If a lease contract requires goods identified when the lease contract is made, and the goods suffer casualty without fault of the lessee, the lessor or the supplier before delivery, or the goods suffer casualty before risk of loss passes to the lessee pursuant to the lease agreement or section 400.2A-219, then:

  (a)  if the loss is total, the lease contract is avoided; and

  (b)  if the loss is partial or the goods have so deteriorated as to no longer conform to the lease contract, the lessee may nevertheless demand inspection and at his option either treat the lease contract as avoided or, except in a finance lease, accept the goods with due allowance from the rent payable for the balance of the lease term for the deterioration or the deficiency in quantity but without further right against the lessor.

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(L. 1992 S.B. 448)