North Dakota Code 41-02.1-71 – (2A-523) Lessor’s remedies
1. If a lessee wrongfully rejects or revokes acceptance of goods or fails to make a payment when due or repudiates with respect to a part or the whole, then, with respect to any goods involved, and with respect to all of the goods if under an installment lease contract the value of the whole lease contract is substantially impaired (section 41-02.1-58), the lessee is in default under the lease contract and the lessor may:
Terms Used In North Dakota Code 41-02.1-71
- Contract: A legal written agreement that becomes binding when signed.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
a. Cancel the lease contract (subsection 1 of section 41-02.1-53).
b. Proceed respecting goods not identified to the lease contract (section 41-02.1-72).
c. Withhold delivery of the goods and take possession of goods previously delivered (section 41-02.1-73).
d. Stop delivery of the goods by any bailee (section 41-02.1-74).
e. Dispose of the goods and recover damages (section 41-02.1-75), or retain the goods and recover damages (section 41-02.1-76), or in a proper case recover rent (section 41-02.1-77).
f. Exercise any other rights or remedies provided in the lease contract.
2. If a lessor does not exercise the rights to which the lessor is entitled under subsection 1, the lessor may recover the loss resulting in the ordinary course of events from the lessee’s default as determined in any manner which is reasonable, together with incidental damages, less expenses saved in consequence of the lessee’s default.
3. If a lessee is otherwise in default under a lease contract, the lessor may exercise the rights and remedies provided in the lease contract, which may include a right to cancel the lease, and unless otherwise provided in the lease contract:
a. If the default substantially impairs the value of the lease contract to the lessor, the lessor may exercise the rights and remedies provided under subsection 1 or 2.
b. If the default does not substantially impair the value of the lease contract to the lessor, the lessor may recover under subsection 2.