If a lease contract requires goods identified when the lease contract is made, and the goods suffer casualty without fault of the lessee, the lessor, or the supplier before delivery, or the goods suffer casualty before risk of loss passes to the lessee pursuant to the lease agreement or § 28:2A-219, then:
(1) If the loss is total, the lease contract is avoided; and
(2) If the loss is partial or the goods have so deteriorated as to no longer conform to the lease contract, the lessee may nevertheless demand inspection and at his or her option either treat the lease contract as avoided or, except in a finance lease that is not a consumer lease, accept the goods with due allowance from the rent payable for the balance of the lease term for the deterioration or the deficiency in quantity but without further right against the lessor.
1981 Ed., § 28:2A-221.
Uniform Commercial Code Comment
Uniform Statutory Source:Section 2-613.
Changes: Revised to reflect leasing practices and terminology. Purpose: Due to the vagaries of determining the amount of due allowance ( Section 2-613(b), no attempt was made in subsection (b) to treat a problem unique to lease contracts and installment sales contracts: determining how to recapture the allowance, e.g., application to the first or last rent payments or allocation, pro rata, to all rent payments.
Cross References:Section 2-613.
Definitional Cross References: “Conforming”. Section 2A-103(1)(d).
“Consumer lease”. Section 2A-103(1)(e).
“Delivery”. Section 1-201(14).
“Fault”. Section 2A-103(1)(f).
“Finance lease”. Section 2A-103(1)(g).
“Goods”. Section 2A-103(1)(h).
“Lease”. Section 2A-103(1)(j).
“Lease agreement”. Section 2A-103(1)(k).
“Lease contract”. Section 2A-193(1)(l).
“Lessee”. Section 2A-103(1)(n).
“Lessor”. Section 2A-103(1)(p).
“Rights”. Section 1-201(36).
“Supplier”. Section 2A-103(1)(x).