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U.C.C. - ARTICLE 2A - LEASES
..PART 5. DEFAULT

§ 2A-505. CANCELLATION AND TERMINATION AND EFFECT OF CANCELLATION, TERMINATION, RESCISSION, OR FRAUD ON RIGHTS AND 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 default or performance survives, and the cancelling party also retains any remedy for default of the whole lease contract or any unperformed balance.
  • (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.
  • (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.
  • (4) Rights and remedies for material misrepresentation or fraud include all rights and remedies available under this Article for default.
  • (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.
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© Copyright 2005 by The American Law Institute and the National Conference of Commissioners on Uniform State Laws; reproduced, published and distributed with the permission of the Permanent Editorial Board for the Uniform Commercial Code for the limited purposes of study, teaching, and academic research.