CHAPTER 5. Default [10501. - 10532.]

Chapter 5 added by Stats. 1988, Ch. 1359, Sec. 5.

§§ 10501–10532 · 32 sections

1. ARTICLE 1. In General §§ 10501–10507 · 7 sections

   • § 10501 (a) Whether the lessor or the lessee is in default under a lease contract is determined by the lease agreement and this division. (b) If the lessor or the…
   • § 10502 Except as otherwise provided in this division or the lease agreement, the lessor or lessee in default under the lease contract is not entitled to notice of…
   • § 10503 (a) Except as otherwise provided in this division, the lease agreement may include rights and remedies for default in addition to or in substitution for those…
   • § 10504 (a) Damages payable by either party for default, or any other act or omission, including indemnity for loss or diminution of anticipated tax benefits or loss…
   • § 10505 (a) On cancellation of the lease contract, all obligations that are still executory on both sides are discharged, but any right based on prior default or…
   • § 10506 (a) An action for default under a lease contract, including breach of warranty or indemnity, must be commenced within four years after the cause of action…
   • § 10507 (a) Damages based on market rent (Section 10519 or 10528) are determined according to the rent for the use of the goods concerned for a lease term identical to…
2. ARTICLE 2. Default by Lessor §§ 10508–10522 · 15 sections

   • § 10508 (a) If a lessor fails to deliver the goods in conformity to the lease contract (Section 10509) or repudiates the lease contract (Section 10402), or a lessee…
   • § 10509 (a) Subject to the provisions of Section 10510 on default in installment lease contracts, if the goods or the tender or delivery fail in any respect to conform…
   • § 10510 (a) Under an installment lease contract, a lessee may reject any delivery that is nonconforming if the nonconformity substantially impairs the value of that…
   • § 10511 (a) Subject to any security interest of a lessee (subdivision (e) of Section 10508), if a lessor or a supplier has no agent or place of business at the market…
   • § 10512 (a) Except as otherwise provided with respect to goods that threaten to decline in value speedily (Section 10511) and subject to any security interest of a…
   • § 10513 (a) If any tender or delivery by the lessor or the supplier is rejected because it is nonconforming and the time for performance has not yet expired, the…
   • § 10514 (a) In rejecting goods, a lessee’s failure to state a particular defect that is ascertainable by reasonable inspection precludes the lessee from relying on the…
   • § 10515 (a) Acceptance of goods occurs after the lessee has had a reasonable opportunity to inspect the goods and (1) The lessee signifies or acts with respect to the…
   • § 10516 (a) A lessee must pay rent for any goods accepted in accordance with the lease contract, with due allowance for goods rightfully rejected or not delivered. (b)…
   • § 10517 (a) A lessee may revoke acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to the lessee if the lessee has accepted it:…
   • § 10518 (a) After a default by a lessor under the lease contract of the type described in subdivision (a) of Section 10508, or, if agreed, after other default by the…
   • § 10519 (a) Except as otherwise provided with respect to damages liquidated in the lease agreement (Section 10504) or otherwise determined pursuant to agreement of the…
   • § 10520 (a) Incidental damages resulting from a lessor’s default include expenses reasonably incurred in inspection, receipt, transportation, and care and custody of…
   • § 10521 (a) Specific performance may be decreed if the goods are unique or in other proper circumstances. (b) A decree for specific performance may include any terms…
   • § 10522 (a) Subject to subdivision (b) and even though the goods have not been shipped, a lessee who has paid a part or all of the rent and security for goods…
3. ARTICLE 3. Default by Lessee §§ 10523–10532 · 10 sections

   • § 10523 (a) If a lessee wrongfully rejects or revokes acceptance of goods or fails to make a payment when due or repudiates with respect to a part or the whole, then,…
   • § 10524 (a) After a default by the lessee under the lease contract of the type described in subdivision (a) of, or paragraph (1) of subdivision (c) of, Section 10523…
   • § 10525 (a) If a lessor discovers the lessee to be insolvent, the lessor may refuse to deliver the goods. (b) After a default by the lessee under the lease contract of…
   • § 10526 (a) A lessor may stop delivery of goods in the possession of a carrier or other bailee if the lessor discovers the lessee to be insolvent and may stop delivery…
   • § 10527 (a) After a default by a lessee under the lease contract of the type described in subdivision (a) of, or paragraph (1) of subdivision (c) of, Section 10523 or…
   • § 10528 (a) Except as otherwise provided with respect to damages liquidated in the lease agreement (Section 10504) or otherwise determined pursuant to agreement of the…
   • § 10529 (a) After default by the lessee under the lease contract of the type described in subdivision (a) of, or paragraph (1) of subdivision (c) of, Section 10523 or,…
   • § 10530 Incidental damages to an aggrieved lessor include any commercially reasonable charges, expenses, or commissions incurred in stopping delivery, in the…
   • § 10531 (a) If a third party so deals with goods that have been identified to a lease contract as to cause actionable injury to a party to the lease contract (1) the…
   • § 10532 In addition to any other recovery permitted by this division or other law, the lessor may recover from the lessee an amount that will fully compensate the…