                                 CODE OF VIRGINIA

LESSEE&#8217;S REMEDIES (§ 8.2A-508)

1. If a lessor fails to deliver the goods in conformity to the lease contract
(§ 8.2A-509) or repudiates the lease contract (§ 8.2A-402), or a lessee
rightfully rejects the goods (§ 8.2A-509) or justifiably revokes acceptance of
the goods (§ 8.2A-517), 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 (§ 8.2A-510), the lessor is
in default under the lease contract and the lessee may:

   a. Cancel the lease contract (subsection (1) of &#xA7; 8.2A-505);

   b. Recover so much of the rent and security as has been paid, and is just
   under the circumstances;

   c. Cover and recover damages as to all goods affected whether or not they have
   been identified to the lease contract (&#xA7;&#xA7; 8.2A-518 and 8.2A-520), or
   recover damages for nondelivery (&#xA7;&#xA7; 8.2A-519 and 8.2A-520); or

   d. Exercise any other rights or pursue any other remedies provided in the
   lease contract.

2. If a lessor fails to deliver the goods in conformity to the lease contract or
repudiates the lease contract, the lessee may also:

   a. If the goods have been identified, recover them (&#xA7; 8.2A-522); or

   b. In a proper case, obtain specific performance or recover the goods (&#xA7;
   8.2A-521).

3. If a lessor is otherwise in default under a lease contract, the lessee may
exercise the rights and pursue the remedies provided in the lease contract,
which may include a right to cancel the lease, and in subsection (3) of &#xA7;
8.2A-519.

4. If a lessor has breached a warranty, whether express or implied, the lessee
may recover damages (subsection (4) of &#xA7; 8.2A-519).

5. On rightful rejection or justifiable revocation of acceptance, a lessee has a
security interest in goods in the lessee&#8217;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 subsection (5) of &#xA7; 8.2A-527.

6. Subject to the provisions of &#xA7; 8.2A-407, a lessee, on notifying the
lessor of the lessee&#8217;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.

HISTORY: 1991, c. 536.