Tex.
Bus. & Com. Code Section 2A.508
Lessee’s Remedies
(a)
If a lessor fails to deliver the goods in conformity to the lease contract (Section 2A.509 (Lessee’s Rights on Improper Delivery; Rightful Rejection)) or repudiates the lease contract (Section 2A.402 (Anticipatory Repudiation)), or a lessee rightfully rejects the goods (Section 2A.509 (Lessee’s Rights on Improper Delivery; Rightful Rejection)) or justifiably revokes acceptance of the goods (Section 2A.517 (Revocation of Acceptance of Goods)), then with respect to any goods involved, and with respect to all of the goods if under an installment lease contract and the value of the whole lease contract is substantially impaired (Section 2A.510 (Installment Lease Contracts: Rejection and Default)), the lessor is in default under the lease contract and the lessee may:(1)
cancel the lease contract (Section 2A.505 (Cancellation and Termination and Effect of Cancellation, Termination, Rescission, or Fraud on Rights and Remedies)(a));(2)
recover so much of the rent and security as has been paid and is just under the circumstances;(3)
cover and recover damages as to all goods affected whether or not they have been identified to the lease contract (Sections 2A.518 (Cover; Substitute Goods) and 2A.520 (Lessee’s Incidental and Consequential Damages)), or recover damages for nondelivery (Sections 2A.519 (Lessee’s Damages for Nondelivery, Repudiation, Default, and Breach of Warranty in Regard to Accepted Goods) and 2A.520 (Lessee’s Incidental and Consequential Damages)); or(4)
exercise any other rights or pursue any other remedies provided in the lease contract.(b)
If a lessor fails to deliver the goods in conformity to the lease contract or repudiates the lease contract, the lessee may also:(1)
if the goods have been identified, recover them (Section 2A.522 (Lessee’s Right to Goods on Lessor’s Insolvency)); or(2)
in a proper case, obtain specific performance, replevin, detinue, sequestration, claim and delivery, or the like for the goods (Section 2A.521 (Lessee’s Right to Specific Performance, Replevin, and Other Remedies)).(c)
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 Section 2A.519 (Lessee’s Damages for Nondelivery, Repudiation, Default, and Breach of Warranty in Regard to Accepted Goods)(c).(d)
If a lessor has breached a warranty, whether express or implied, the lessee may recover damages (Section 2A.519 (Lessee’s Damages for Nondelivery, Repudiation, Default, and Breach of Warranty in Regard to Accepted Goods)(d)).(e)
On rightful rejection or justifiable revocation or 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 Section 2A.527 (Lessor’s Rights to Dispose of Goods)(e).(f)
Subject to the provisions of Section 2A.407 (Irrevocable Promises: Finance Leases), a lessee, on notifying the lessor of the lessee’s intention to do so, may deduct all or 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.
Source:
Section 2A.508 — Lessee's Remedies, https://statutes.capitol.texas.gov/Docs/BC/htm/BC.2A.htm#2A.508 (accessed Jun. 5, 2024).
