New Jersey § 12a:2a-508

§ 12a:2a-508.

(1) If a lessor fails to deliver the goods in conformity to the lease contract (12A:2A-509)

or repudiates the lease contract (12A:2A-402), or a lessee rightfully rejects the

goods (12A:2A-509) or justifiably revokes acceptance of the goods (12A:2A-517), 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 (12A:2A-510), the lessor is in default under the lease contract and the lessee

may: (a) cancel the lease contract (12A:2A-505(1)); (b) recover so much of the rent and security as has been paid and is just under the

circumstances; (c) cover and recover damages as to all goods affected whether or not they have been

identified to the lease contract ( sections 12A:2A-518 and 12A:2A-520 ), or recover damages for nondelivery ( sections 12A:2A-519 and 12A:2A-520 ); (d) exercise any other rights or pursue any other remedies provided in the lease contract. (2) If a lessor fails to deliver the goods in conformity to the lease contract or

repudiates the lease contract, the lessee may also: (a) if the goods have been identified, recover them (12A:2A-522); or (b) in a proper case, obtain specific performance or replevy the goods (12A:2A-521). (3) If a lessor is otherwise in default under a lease contract, the lessee may exercise

the rights and pursue the remedies provided in the lease contract, which may include

a right to cancel the lease, and in 12A:2A-519(3). (4) If a lessor has breached a warranty, whether express or implied, the lessee may

recover damages (12A:2A-519(4)). (5) On rightful rejection or justifiable revocation of acceptance, a lessee has a

security interest in goods in the lessee's possession or control for any rent and

security that has been paid and any expenses reasonably incurred in their inspection,

receipt, transportation, and care and custody and may hold those goods and dispose

of them in good faith and in a commercially reasonable manner, subject to 12A:2A-527(5). (6) Subject to the provisions of 12A:2A-407, a lessee, on notifying the lessor of

the lessee's intention to do so, may deduct all or any part of the damages resulting

from any default under the lease contract from any part of the rent still due under

the same lease contract.