<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 57A-2A-505 - Cancellation and termination and effect of cancellation, termination, rescission, or fraud on rights and remedies. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073333Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2073333SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073333CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073333Normal-000000 { margin-top: 0; margin-bottom: 0; margin-left: 2.50in; text-indent: -2.00in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } span.s2073333DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073333Normal-000001 { margin-top: 0; margin-bottom: 0; margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } span.s2073333000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073333SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073333SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2073333Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2A-505"><span class="s2073333SENU">57A-2A-505</span></a><span xml:space="preserve" class="s2073333SENU">. </span><span class="s2073333CL">Cancellation and termination and effect of cancellation, termination, rescission, or fraud on rights and remedies.</span></p><p dir="ltr" class="s2073333Normal-000000"><span class="s2073333DefaultParagraphFont">(1)    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 performance survives, and the cancelling party also retains any remedy for default of the whole lease contract or any unperformed balance.</span></p><p dir="ltr" class="s2073333Normal-000001"><span class="s2073333DefaultParagraphFont">(2)    On termination of the lease contract, all obligations that are still executory on both sides are discharged but any right based on prior default or performance survives.</span></p><p dir="ltr" class="s2073333Normal-000001"><span class="s2073333DefaultParagraphFont">(3)    Unless the contrary intention clearly appears, expressions of "cancellation," "rescission," or the like of the lease contract may not be construed as a renunciation or discharge of any claim in damages for an antecedent default.</span></p><p dir="ltr" class="s2073333Normal-000001"><span class="s2073333DefaultParagraphFont">(4)    Rights and remedies for material misrepresentation or fraud include all rights and remedies available under this chapter for default.</span></p><p dir="ltr" class="s2073333Normal-000001"><span class="s2073333DefaultParagraphFont">(5)    Neither rescission nor a claim for rescission of the lease contract nor rejection or return of the goods may bar or be deemed inconsistent with a claim for damages or other right or remedy.</span></p><p dir="ltr" class="s2073333Normal"><span xml:space="preserve" class="s2073333000002"> </span></p><p dir="ltr" class="s2073333Normal"><span class="s2073333SCL">Source:</span><span xml:space="preserve" class="s2073333SCL-000003"> SL 1989, ch 419, § 1.</span></p></div></body></html>