(a) 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 490:2A-510 ), the lessee is in default under the lease contract and the lessor may:

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Terms Used In Hawaii Revised Statutes 490:2A-523

  • 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.
  • Fraud: Intentional deception resulting in injury to another.
  • 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
  • Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
(1) Cancel the lease contract (section rescission, or fraud on rights and remedies” class=”unlinked-ref” datatype=”S” sessionyear=”2019″ statecd=”HI”>490:2A-505(a) );
(2) Proceed respecting goods not identified to the lease contract (section 490:2A-524 );
(3) Withhold delivery of the goods and take possession of goods previously delivered (section 490:2A-525 );
(4) Stop delivery of the goods by any bailee (section 490:2A-526 );
(5) Dispose of the goods and recover damages (section 490:2A-527 ), or retain the goods and recover damages (section 490:2A-528 ), or in a proper case recover rent (section 490:2A-529 );
(6) Exercise any other rights or pursue any other remedies provided in the lease contract.
(b) If a lessor does not fully exercise a right or obtain a remedy to which the lessor is entitled under subsection (a), the lessor may recover the loss resulting in the ordinary course of events from the lessee’s default as determined in any reasonable manner, together with incidental damages, less expenses saved in consequence of the lessee’s default.
(c) If a lessee is otherwise in default under a lease contract, the lessor may exercise the rights and pursue the remedies provided in the lease contract, which may include a right to cancel the lease. In addition, unless otherwise provided in the lease contract:

(1) If the default substantially impairs the value of the lease contract to the lessor, the lessor may exercise the rights and pursue the remedies provided in subsection (a) or (b); or
(2) If the default does not substantially impair the value of the lease contract to the lessor, the lessor may recover as provided in subsection (b).
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