New Jersey § 12a:2a-518

§ 12a:2a-518.

(1) After a default by a lessor under the lease contract of the type described in

12A:2A-508(1), or, if agreed, after other default by the lessor, the lessee may cover

by making any purchase or lease of or contract to purchase or lease goods in substitution

for those due from the lessor. (2) Except as otherwise provided with respect to damages liquidated in the lease agreement

(12A:2A-504) or otherwise determined pursuant to agreement of the parties ( sections 12A:1-102(3) and 12A:2A-503 ), if a lessee's cover is by a lease agreement substantially similar to the original

lease agreement and the new lease agreement is made in good faith and in a commercially

reasonable manner, the lessee may recover from the lessor as damages (i) the present

value, as of the date of the commencement of the term of the new lease agreement,

of the rent under the new lease agreement applicable to that period of the new lease

term which is comparable to the then remaining term of the original lease agreement

minus the present value as of the same date of the total rent for the then remaining

lease term of the original lease agreement, and (ii) any incidental or consequential

damages, less expenses saved in consequence of the lessor's default. (3) If a lessee's cover is by lease agreement that for any reason does not qualify

for treatment under subsection (2), or is by purchase or otherwise, the lessee may

recover from the lessor as if the lessee had elected not to cover and 12A:2A-519 governs.