24.13.080 Lessee's Remedies

(a) If a lessor fails to deliver the goods in conformity to the lease contract (Section 24.13.090) or repudiates the lease contract (Section 24.12.020), or a lessee rightfully rejects the goods (Section 24.13.090) or justifiably revokes acceptance of the goods (Section 24.13.170), then with respect to any goods involved, and with respect to all of the goods if under an installment lease contract the value of the whole lease contract is substantially impaired (Section 24.13.100), the lessor is in default under the lease contract and the lessee may:

(1) Cancel the lease contract (Section 24.13.050(a));

(2) Recover so much of the rent and security as has been paid, but in the case of an installment lease contract the recovery is that which is just under the circumstances;

(3) Cover and recover damages as to all goods affected whether or not they have been identified to the lease contract (Section 24.13.180 and Section 24.13.200), or recover damages for nondelivery (Section 24.13.190 and Section 24.13.200).

(b) If a lessor fails to deliver the goods in conformity to the lease contract or repudiates the lease contract, the lessee may also:

(1) If the goods have been identified, recover them (Section 24.13.220); or

(2) In a proper case, obtain specific performance or replevy the goods (Section 24.13.210).

(c) If a lessor is otherwise in default under a lease contract, the lessee may exercise the rights and remedies provided in this article except to the extent that this article makes the right or remedy available only upon the occurrence of a default described in Subsection (a) or (b).

(d) If a lessor has breached a warranty, whether express or implied, the lessee may recover damages (Section 24.13.190(d)).

(e) On rightful rejection or justifiable revocation of acceptance, a lessee has a security interest in goods in the lessee's possession or control for any rent and security that has been paid and any expenses reasonably incurred in their inspection, receipt, transportation and care and custody and may hold those goods and dispose of them in good faith and in a commercially reasonable manner, subject to the provisions of Section 24.13.270(e).

(f) Subject to the provisions of Section 24.12.070, a lessee, on notifying the lessor of the lessee's intention to do so, may deduct all or any part of the damages resulting from any default under the lease contract from any part of the rent still due under the same lease contract.