Tex. Bus. & Com. Code Section 2A.527
Lessor’s Rights to Dispose of Goods


(a)

After a default by a lessee under the lease contract of the type described in Section 2A.523 (Lessor’s Remedies)(a) or (c)(1) or after the lessor refuses to deliver or takes possession of goods (Section 2A.525 (Lessor’s Right to Possession of Goods) or 2A.526 (Lessor’s Stoppage of Delivery in Transit or Otherwise)), or, if agreed, after other default by a lessee, the lessor may dispose of the goods concerned or the undelivered balance thereof by lease, sale or otherwise.

(b)

Except as otherwise provided with respect to damages liquidated in the lease agreement (Section 2A.504 (Liquidation of Damages)) or otherwise determined pursuant to agreement of the parties (Sections 1.302 (Variation by Agreement) and 2A.503 (Modification or Impairment of Rights and Remedies)), if the disposition is by lease agreement substantially similar to the original lease agreement and the new lease agreement is made in good faith and in a commercially reasonable manner, the lessor may recover from the lessee as damages (1) accrued and unpaid rent as of the date of the commencement of the term of the new lease agreement, (2) the present value, as of the same date, of the total rent for the then remaining lease term of the original lease agreement minus the present value, as of the same date, of the rent under the new lease agreement applicable to that period of the new lease term which is comparable to the then remaining term of the original lease agreement, and (3) any incidental damages allowed under Section 2A.530 (Lessor’s Incidental Damages), less expenses saved in consequence of the lessee’s default.

(c)

If the lessor’s disposition is by lease agreement that for any reason does not qualify for treatment under Subsection (b), or is by sale or otherwise, the lessor may recover from the lessee as if the lessor had elected not to dispose of the goods and Section 2A.528 (Lessor’s Damages for Nonacceptance, Failure to Pay, Repudiation, or Other Default) governs.

(d)

A subsequent buyer or lessee who buys or leases from the lessor in good faith for value as a result of a disposition under this section takes the goods free of the original lease contract and any rights of the original lessee even though the lessor fails to comply with one or more of the requirements of this chapter.

(e)

The lessor is not accountable to the lessee for any profit made on any disposition. A lessee who has rightfully rejected or justifiably revoked acceptance shall account to the lessor for any excess over the amount of the lessee’s security interest (Section 2A.508 (Lessee’s Remedies)(e)).
Added by Acts 1993, 73rd Leg., ch. 570, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 2003, 78th Leg., ch. 542, Sec. 8, eff. Sept. 1, 2003.

Source: Section 2A.527 — Lessor's Rights to Dispose of Goods, https://statutes.­capitol.­texas.­gov/Docs/BC/htm/BC.­2A.­htm#2A.­527 (accessed Mar. 23, 2024).

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

Accessed:
Mar. 23, 2024

§ 2A.527’s source at texas​.gov