Michigan Compiled Laws 174-1962-2a-5 Part 5 Default (440.2951...440.2982)

• Section 440.2951 Default; Rights And Remedies; Self-help; Enforcement Covering Real Property And Goods.
  (1) Whether the lessor or the lessee is in default under a lease contract is determined by the lease agreement and this article. (2)...
• Section 440.2952 Notice Of Default Or Enforcement.
  Except as otherwise provided in this article or the lease agreement, the lessor or lessee in default under the lease contract is not entitled...
• Section 440.2953 Default; Rights And Remedies Provided In Lease Agreement; Optional Remedies; Liquidation, Limitation, Alteration Or Exclusion Of Consequential Damages; Collateral Or Ancillary Obligations And Promises.
  (1) Except as otherwise provided in this article, the lease agreement may include rights and remedies for default in addition to or in substitution...
• Section 440.2954 Liquidation Of Damages; Reasonableness; Restitution; Setoff.
  (1) Damages payable by either party for default, or any other act or omission, including indemnity for loss or diminution of anticipated tax benefits...
• Section 440.2955 Cancellation Or Termination Of Lease Contract; Discharge Of Executory Obligations; Material Misrepresentation Or Fraud; Rescission, Rejection, Or Return Of Goods As Bar To Rights Or Remedies.
  (1) On cancellation of the lease contract, all obligations that are still executory on both sides are discharged, but any right based on prior...
• Section 440.2956 Default; Commencement And Accrual Of Action; Effect Of Termination; Applicability Of Section To Tolling Of Statute Of Limitations Or Causes Of Action Accrued Before Effective Date Of Article.
  (1) An action for default under a lease contract, including breach of warranty or indemnity, must be commenced within 4 years after the cause...
• Section 440.2957 Damages Based On Market Rent.
  (1) Damages based on market rent (section 2A519 or 2A528) are determined according to the rent for the use of the goods concerned for...
• Section 440.2958 Default By Lessor; Rights And Remedies; Breach Of Warranty; Security Interest For Rent, Security, And Expenses; Deduction Of Damages From Rent Due.
  (1) If a lessor fails to deliver the goods in conformity to the lease contract (section 2A509) or repudiates the lease contract (section 2A402),...
• Section 440.2959 Failure Of Goods Or Tender Or Delivery To Conform To Lease Contract; Rights Of Lessee; Effectiveness Of Rejection Of Goods.
  (1) Subject to the provisions of section 2A510 on default in installment lease contracts, if the goods or the tender or delivery fail in...
• Section 440.2960 Installment Lease Contract; Rejecting Nonconforming Delivery; Conditions Requiring Acceptance; Reinstatement Of Lease Contract.
  (1) Under an installment lease contract a lessee may reject any delivery that is nonconforming if the nonconformity substantially impairs the value of that...
• Section 440.2961 Rejection Of Goods In Merchant Lessee's Possession Or Control; Duties Of Merchant Lessee; Right To Reimbursement; Good Faith Conduct; Purchaser In Good Faith.
  (1) Subject to any security interest of a lessee (section 2A508(5)), if a lessor or a supplier has no agent or place of business...
• Section 440.2962 Rejection Of Goods In Lessee's Possession; Rights And Obligations Of Lessee.
  (1) Except as otherwise provided with respect to goods that threaten to decline in value speedily (section 2A511) and subject to any security interest...
• Section 440.2963 Rejection Of Goods Before Expiration Of Time For Performance; Rights Of Lessor Or Supplier.
  (1) If any tender or delivery by the lessor or the supplier is rejected because nonconforming and the time for performance has not yet...
• Section 440.2964 Rejection Of Goods; Failure Of Lessee To State Particular Defect Or Reserve Rights When Paying Consideration Against Documents; Effect.
  (1) In rejecting goods, a lessee's failure to state a particular defect that is ascertainable by reasonable inspection precludes the lessee from relying on...
• Section 440.2965 Acceptance Of Goods; Opportunity To Inspect; Conduct; Accepting Part Of Unit.
  (1) Acceptance of goods occurs after the lessee has had a reasonable opportunity to inspect the goods and either of the following applies: (a)...
• Section 440.2966 Acceptance Of Goods; Rent; Revocation Prohibited; Exception; Acceptance Of Tender; Effect Of Suit Against Lessee For Breach Of Warranty Or Other Obligation; Infringement.
  (1) A lessee must pay rent for any goods accepted in accordance with the lease contract, with due allowance for goods rightfully rejected or...
• Section 440.2967 Revoking Acceptance Of Nonconforming Lot Or Commercial Unit; Conditions; Notification; Rights And Duties Of Lessee.
  (1) A lessee may revoke acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to the lessee if the lessee...
• Section 440.2968 Default By Lessor; Cover; Damages.
  (1) After default by a lessor under the lease contract of the type described in section 2A508(1) or, if agreed, after other default by...
• Section 440.2969 Nondelivery Or Repudiation By Lessor; Rejection Or Revocation Of Acceptance By Lessee; Damages; Measure Of Damages For Market Rent, Nonconforming Tender Or Delivery, Or Breach Of Warranty.
  (1) Except as otherwise provided with respect to damages liquidated in the lease agreement under section 2A504 or otherwise determined pursuant to agreement of...
• Section 440.2970 Default By Lessor; Incidental And Consequential Damages.
  (1) Incidental damages resulting from a lessor's default include expenses reasonably incurred in inspection, receipt, transportation, and care and custody of goods rightfully rejected...
• Section 440.2971 Specific Performance.
  (1) Specific performance may be decreed if the goods are unique or in other proper circumstances. (2) A decree for specific performance may include...
• Section 440.2972 Insolvency Of Lessor; Recovery Of Conforming Goods After Receipt Of First Installment Of Rent And Security.
  (1) Subject to subsection (2) and even though the goods have not been shipped, a lessee who has paid a part or all of...
• Section 440.2973 Wrongful Rejection Or Revocation; Failure To Make Payment; Repudiation; Default; Rights Of Lessor; Damages; Cancellation Of Lease.
  (1) If a lessee wrongfully rejects or revokes acceptance of goods or fails to make a payment when due or repudiates with respect to...
• Section 440.2974 Additional Rights Of Lessor Aggrieved Under Mcl 440.2973(1).
  (1) A lessor aggrieved under section 2A523(1) may do any of the following: (a) Identify to the lease contract conforming goods not already identified...
• Section 440.2975 Insolvency Of Lessee; Refusal To Deliver Goods; Possession, Availability, Or Disposition Of Goods; Proceeding Without Judicial Process.
  (1) If a lessor discovers the lessee to be insolvent, the lessor may refuse to deliver the goods. (2) After a default by the...
• Section 440.2976 Insolvency Of Lessee; Stopping Delivery Of Goods In Possession Of Bailee; Conditions; Notification; Liability For Charges Or Damages; Obligation Of Carrier.
  (1) A lessor may stop delivery of goods in the possession of a carrier or other bailee if the lessor discovers the lessee is...
• Section 440.2977 Default; Disposition Of Goods; Damages Based On New Lease Agreement; Rights Of Subsequent Good Faith Buyer Or Lessee; Accounting For Profit.
  (1) After a default by a lessee under the lease contract of the type described in section 2A523(1) or 2A523(3), or after the lessor...
• Section 440.2978 Retention Or Disposition Of Goods By Lessor; Damages.
  (1) Except as otherwise provided with respect to damages liquidated in the lease agreement under section 2A504 or otherwise determined pursuant to agreement of...
• Section 440.2979 Default By Lessee; Damages; Holding Identified Goods For Remaining Lease Term; Disposition Of Goods By Lessor; Use And Possession Of Goods By Lessee; Rent.
  (1) After default by the lessee under the lease contract of the type described in section 2A523(1) or 2A523(3)(a) or, if agreed, after other...
• Section 440.2980 Incidental Damages.
  Incidental damages to an aggrieved lessor include any commercially reasonable charges, expenses, or commissions incurred in stopping delivery, in the transportation, care and custody...
• Section 440.2981 Third Party Causing Injury.
  (1) If a third party so deals with goods that have been identified to a lease contract as to cause actionable injury to a...
• Section 440.2982 Additional Damages.
  In addition to any other recovery permitted by this article or other law, the lessor may recover from the lessee an amount that will...

Last modified: October 10, 2016