Section 45.12.510. Installment lease contracts: rejection and default.

   (a) Under an installment lease contract a lessee may reject a delivery that is nonconforming if the nonconformity substantially impairs the value of that delivery and cannot be cured or the nonconformity is a defect in the required documents; but if the nonconformity does not fall within (b) of this section and the lessor or the supplier gives adequate assurance of its cure, the lessee must accept that delivery.
   (b) If nonconformity or default with respect to one or more deliveries substantially impairs the value of the installment lease contract as a whole, there is a default with respect to the whole. The aggrieved party reinstates the installment lease contract as a whole if the aggrieved party accepts a nonconforming delivery without seasonably notifying of cancellation or brings an action with respect only to past deliveries or demands performance as to future deliveries.

Authorities

45.12.406;45.12.508;45.12.509;45.12.523

Notes

References

AS 45.12.406 Procedure on excused performance.
AS 45.12.508 Lessee's remedies.
AS 45.12.509 Lessee's rights on improper delivery; rightful rejection.
AS 45.12.523 Lessor's remedies.

History

(Sec. 125 ch 35 SLA 1993)