New Jersey § 12a:2a-221

§ 12a:2a-221.

If a lease contract requires goods identified when the lease contract is made, and

the goods suffer casualty without fault of the lessee, the lessor or the supplier

before delivery, or the goods suffer casualty before risk of loss passes to the lessee

pursuant to the lease agreement or 12A:2A-219, then: (1) if the loss is total, the lease contract is avoided; and (2) if the loss is partial or the goods have so deteriorated as to no longer conform

to the lease contract, the lessee may nevertheless demand inspection and at the lessee's

option either treat the lease contract as avoided or, except in a finance lease that

is not a consumer lease, accept the goods with due allowance from the rent payable

for the balance of the lease term for the deterioration or the deficiency in quantity

but without further right against the lessor.