Tex. Bus. & Com. Code Section 2A.510
Installment Lease Contracts: Rejection and Default

(a)

Under an installment lease contract a lessee may reject any delivery that is nonconforming if the nonconformity substantially impairs the value of that delivery and cannot be cured or the nonconformity is a defect in the required documents; but if the nonconformity does not fall within Subsection (b) and the lessor or the supplier gives adequate assurance of its cure, the lessee must accept the delivery.

(b)

Whenever nonconformity or default with respect to one or more deliveries substantially impairs the value of the installment lease contract as a whole there is a default with respect to the whole. But the aggrieved party reinstates the installment lease contract as a whole if the aggrieved party accepts a nonconforming delivery without seasonably notifying of cancellation or brings an action with respect only to past deliveries or demands performance as to future deliveries.
Added by Acts 1993, 73rd Leg., ch. 570, Sec. 1, eff. Sept. 1, 1993.

Source: Section 2A.510 — Installment Lease Contracts: Rejection and Default, https://statutes.­capitol.­texas.­gov/Docs/BC/htm/BC.­2A.­htm#2A.­510 (accessed May 26, 2025).

2A.101
Short Title 2A.102
Scope 2A.103
Definitions and Index of Definitions 2A.104
Leases Subject to Other Laws 2A.105
Territorial Application of Chapter to Goods Covered by Certificate of Title 2A.106
Limitation on Power of Parties to Consumer Lease to Choose Applicable Law and Judicial Forum 2A.107
Waiver or Renunciation of Claim or Right After Default 2A.108
Unconscionability 2A.109
Option to Accelerate at Will 2A.201
Statute of Frauds 2A.202
Final Written Expression 2A.203
Seals Inoperative 2A.204
Formation in General 2A.205
Firm Offers 2A.206
Offer and Acceptance in Formation of Lease Contract 2A.208
Modification, Rescission and Waiver 2A.209
Lessee Under Finance Lease as Beneficiary of Supply Contract 2A.210
Express Warranties 2A.211
Warranties Against Interference and Against Infringement 2A.212
Implied Warranty of Merchantability 2A.213
Implied Warranty of Fitness for Particular Purpose 2A.214
Exclusion or Modification of Warranties 2A.215
Accumulation and Conflict of Warranties Express or Implied 2A.216
Third-party Beneficiaries of Express and Implied Warranties 2A.217
Identification 2A.218
Insurance and Proceeds 2A.219
Risk of Loss 2A.220
Effect of Default on Risk of Loss 2A.221
Casualty to Identified Goods 2A.301
Enforceability of Lease Contract 2A.302
Title to and Possession of Goods 2A.303
Alienability of Party’s Interest Under Lease Contract or of Lessor’s Residual Interest in Goods 2A.304
Subsequent Lease of Goods by Lessor 2A.305
Sale or Sublease of Goods by Lessee 2A.306
Priority of Certain Liens Arising by Operation of Law 2A.307
Priority of Liens Arising by Attachment or Levy On, Security Interests In, and Other Claims to Goods 2A.308
Special Rights of Creditors 2A.309
Lessor’s and Lessee’s Rights When Goods Become Fixtures 2A.310
Lessor’s and Lessee’s Rights When Goods Become Accessions 2A.401
Insecurity: Adequate Assurance of Performance 2A.402
Anticipatory Repudiation 2A.403
Retraction of Anticipatory Repudiation 2A.404
Substituted Performance 2A.405
Excused Performance 2A.406
Procedure on Excused Performance 2A.407
Irrevocable Promises: Finance Leases 2A.501
Default: Procedure 2A.502
Notice After Default 2A.503
Modification or Impairment of Rights and Remedies 2A.504
Liquidation of Damages 2A.505
Cancellation and Termination and Effect of Cancellation, Termination, Rescission, or Fraud on Rights and Remedies 2A.506
Statute of Limitations 2A.507
Proof of Market Rent 2A.508
Lessee’s Remedies 2A.509
Lessee’s Rights on Improper Delivery 2A.510
Installment Lease Contracts: Rejection and Default 2A.511
Merchant Lessee’s Duties as to Rightfully Rejected Goods 2A.512
Lessee’s Duties as to Rightfully Rejected Goods 2A.513
Cure by Lessor of Improper Tender or Delivery 2A.514
Waiver of Lessee’s Objections 2A.515
Acceptance of Goods 2A.516
Effect of Acceptance of Goods 2A.517
Revocation of Acceptance of Goods 2A.518
Cover 2A.519
Lessee’s Damages for Nondelivery, Repudiation, Default, and Breach of Warranty in Regard to Accepted Goods 2A.520
Lessee’s Incidental and Consequential Damages 2A.521
Lessee’s Right to Specific Performance, Replevin, and Other Remedies 2A.522
Lessee’s Right to Goods on Lessor’s Insolvency 2A.523
Lessor’s Remedies 2A.524
Lessor’s Right to Identify Goods to Lease Contract 2A.525
Lessor’s Right to Possession of Goods 2A.526
Lessor’s Stoppage of Delivery in Transit or Otherwise 2A.527
Lessor’s Rights to Dispose of Goods 2A.528
Lessor’s Damages for Nonacceptance, Failure to Pay, Repudiation, or Other Default 2A.529
Lessor’s Action for the Rent 2A.530
Lessor’s Incidental Damages 2A.531
Standing to Sue Third Parties for Injury to Goods 2A.532
Lessor’s Rights to Residual Interest
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Verified:
May 26, 2025

§ 2A.510. Installment Lease Contracts: Rejection & Default's source at texas​.gov