(1) In rejecting goods, a lessee‘s failure to state a particular defect that is ascertainable by reasonable inspection precludes the lessee from relying on the defect to justify rejection or to establish default:

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Terms Used In Alabama Code 7-2A-514

  • Goods: means all things that are movable at the time of identification to the lease contract, or are fixtures (Section 7-2A-309), but the term does not include money, documents, instruments, accounts, chattel paper, general intangibles, or minerals or the like, including oil and gas, before extraction. See Alabama Code 7-2A-103
  • Lessee: means a person who acquires the right to possession and use of goods under a lease. See Alabama Code 7-2A-103
  • Lessor: means a person who transfers the right to possession and use of goods under a lease. See Alabama Code 7-2A-103
  • state: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Alabama Code 1-1-1
  • Supplier: means a person from whom a lessor buys or leases goods to be leased under a finance lease. See Alabama Code 7-2A-103
  • writing: includes typewriting and printing on paper. See Alabama Code 1-1-1
(a) if, stated seasonably, the lessor or the supplier could have cured it (Section 7-2A-513); or
(b) between merchants if the lessor or the supplier after rejection has made a request in writing for a full and final written statement of all defects on which the lessee proposes to rely.
(2) A lessee’s failure to reserve rights when paying rent or other consideration against documents precludes recovery of the payment for defects apparent in the documents.
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