<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-508 - Lessee's remedies. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073336Normal { text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2073336SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073336CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073336Normal-000000 { margin-left: 3.00in; text-indent: -2.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } 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0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2073336Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2A-508"><span class="s2073336SENU">57A-2A-508</span></a><span xml:space="preserve" class="s2073336SENU">. </span><span class="s2073336CL">Lessee's remedies.</span></p><p dir="ltr" class="s2073336Normal-000000"><span xml:space="preserve" class="s2073336DefaultParagraphFont">(1)    If a lessor fails to deliver the goods in conformity to the lease contract (§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2A-509"><span class="s2073336DefaultParagraphFont">57A-2A-509</span></a><span xml:space="preserve" class="s2073336DefaultParagraphFont">) or repudiates the lease contract (§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2A-402"><span class="s2073336DefaultParagraphFont">57A-2A-402</span></a><span xml:space="preserve" class="s2073336DefaultParagraphFont">), or a lessee rightfully rejects the goods (§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2A-509"><span class="s2073336DefaultParagraphFont">57A-2A-509</span></a><span xml:space="preserve" class="s2073336DefaultParagraphFont">) or justifiably revokes acceptance of the goods (§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2A-517"><span class="s2073336DefaultParagraphFont">57A-2A-517</span></a><span xml:space="preserve" class="s2073336DefaultParagraphFont">), 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 (§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2A-510"><span class="s2073336DefaultParagraphFont">57A-2A-510</span></a><span class="s2073336DefaultParagraphFont">), the lessor is in default under the lease contract and the lessee may:</span></p><p dir="ltr" class="s2073336Normal-000001"><span class="s2073336DefaultParagraphFont">(a)    Cancel the lease contract (§ 57A-2A-505(1));</span></p><p dir="ltr" class="s2073336Normal-000001"><span class="s2073336DefaultParagraphFont">(b)    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;</span></p><p dir="ltr" class="s2073336Normal-000001"><span xml:space="preserve" class="s2073336DefaultParagraphFont">(c)    Cover and recover damages as to all goods affected whether or not they have been identified to the lease contract (§§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2A-518"><span class="s2073336DefaultParagraphFont">57A-2A-518</span></a><span xml:space="preserve" class="s2073336DefaultParagraphFont"> and </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2A-520"><span class="s2073336DefaultParagraphFont">57A-2A-520</span></a><span xml:space="preserve" class="s2073336DefaultParagraphFont">), or recover damages for nondelivery (§§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2A-519"><span class="s2073336DefaultParagraphFont">57A-2A-519</span></a><span xml:space="preserve" class="s2073336DefaultParagraphFont"> and </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2A-520"><span class="s2073336DefaultParagraphFont">57A-2A-520</span></a><span class="s2073336DefaultParagraphFont">).</span></p><p dir="ltr" class="s2073336Normal-000002"><span class="s2073336DefaultParagraphFont">(2)    If a lessor fails to deliver the goods in conformity to the lease contract or repudiates the lease contract, the lessee may also:</span></p><p dir="ltr" class="s2073336Normal-000001"><span xml:space="preserve" class="s2073336DefaultParagraphFont">(a)    If the goods have been identified, recover them (§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2A-522"><span class="s2073336DefaultParagraphFont">57A-2A-522</span></a><span class="s2073336DefaultParagraphFont">); or</span></p><p dir="ltr" class="s2073336Normal-000001"><span xml:space="preserve" class="s2073336DefaultParagraphFont">(b)    In a proper case, obtain specific performance or replevy the goods (§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2A-521"><span class="s2073336DefaultParagraphFont">57A-2A-521</span></a><span class="s2073336DefaultParagraphFont">).</span></p><p dir="ltr" class="s2073336Normal-000002"><span class="s2073336DefaultParagraphFont">(3)    If a lessor is otherwise in default under a lease contract, the lessee may exercise the rights and remedies provided in this chapter except to the extent that this chapter makes the right or remedy available only upon the occurrence of a default described in subsection (1) or (2).</span></p><p dir="ltr" class="s2073336Normal-000002"><span class="s2073336DefaultParagraphFont">(4)    If a lessor has breached a warranty, whether express or implied, the lessee may recover damages (§ 57A-2A-519(4)).</span></p><p dir="ltr" class="s2073336Normal-000002"><span class="s2073336DefaultParagraphFont">(5)    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 § 57A-2A-527(5).</span></p><p dir="ltr" class="s2073336Normal-000002"><span xml:space="preserve" class="s2073336DefaultParagraphFont">(6)    Subject to the provisions of § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2A-407"><span class="s2073336DefaultParagraphFont">57A-2A-407</span></a><span class="s2073336DefaultParagraphFont">, 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.</span></p><p dir="ltr" class="s2073336Normal"><span xml:space="preserve" class="s2073336000003"> </span></p><p dir="ltr" class="s2073336Normal"><span class="s2073336SCL">Source:</span><span xml:space="preserve" class="s2073336SCL-000004"> SL 1989, ch 419, § 1; SL 1990, ch 390, § 17.</span></p></div></body></html>