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84-2a-509. Lessee's rights on improper delivery; rightful rejection. (1) Subject to the provisions of K.S.A. 84-2a-510 on default in installment lease contracts, if the goods or the tender or delivery fail in any respect to conform to the lease contract, the lessee may reject or accept the goods or accept any commercial unit or units and reject the rest of the goods.

(2) Rejection of goods is ineffective unless it is within a reasonable time after tender or delivery of the goods and the lessee seasonably notifies the lessor.

History: L. 1991, ch. 295, ยง 57; February 1, 1992.

KANSAS COMMENT, 1996

1. Subsection (1) continues the "perfect tender" rule for lease contracts: it permits a lessee to reject goods that "fail in any respect to conform to the lease contract." See also 84-2-601. Substantial performance of the lease contract is not enough. When a lessee rightfully rejects the goods, the lessor is in default and the remedies of section 84-2a-508 become available.

2. Like Article 2, Article 2A subjects the perfect tender rule to a number of exceptions. See 1996 Kansas Comment 1 to 84-2-601. The lessor has the right to cure. See 84-2a-513. The lessee's rejection must be in good faith. See 84-1-203. The parties may modify the requirement of perfect tender by express contract language, or by course of performance (84-2a-207), course of dealing, or trade usage (84-1-205). In addition, article 2A does away with the perfect tender rule in installment lease contracts (84-2a-510) (expressly cross-referenced in subsection (1)) and when the lessee seeks to revoke acceptance (84-2a-517).

3. If the goods are conforming the lessee has a duty to accept them. If the goods are nonconforming, under subsection (1) the lessee may reject or accept the whole delivery or accept any commercial unit or units and reject the rest. A commercial unit is "such a unit of goods as by commercial usage is a single whole for purposes of lease and division of which materially impairs its character or value on the market or in use." 84-2a-103(1)(d). For the rights and duties of a lessee who accepts nonconforming goods, see 84-2a-516.

4. Subsection (2) borrows from section 84-2-602(1) the procedural requirements for an effective rejection. See 1996 Kansas Comments 1 & 2 to 84-2-602.


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