KRS 355.2A-519: Lessee's damages for nondelivery, repudiation, default, and breach of

warranty in regard to accepted goods.

(1) Except as otherwise provided with respect to damages liquidated in the lease

agreement (KRS 355.2A-504) or otherwise determined pursuant to agreement of the

parties (KRS 355.1-302 and 355.2A-503), if a lessee elects not to cover or a lessee

elects to cover and the cover is by lease agreement that for any reason does not

qualify for treatment under subsection (2) of KRS 355.2A -518, or is by purchase or

otherwise, the measure of damages for nondelivery or repudiation by the lessor or

for rejection or revocation of acceptance by the lessee is the present value, as of the

date of the default, of the then market rent minus the present value as o f the same

date of the original rent, computed for the remaining lease term of the original lease

agreement, together with incidental and consequential damages, less expenses saved

in consequence of the lessor's default.

(2) Market rent is to be determined as of the place for tender or, in cases of rejection

after arrival or revocation of acceptance, as of the place of arrival.

(3) Except as otherwise agreed, if the lessee has accepted goods and given notification

(KRS 355.2A -516(3)), the measure of damages for nonconforming tender or

delivery or other default by a lessor is the loss resulting in the ordinary course of

events from the lessor's default as determined in any manner that is reasonable

together with incidental and consequential damages, less expe nses saved in

consequence of the lessor's default.

(4) Except as otherwise agreed, the measure of damages for breach of warranty is the

present value at the time and place of acceptance of the difference between the

value of the use of the goods accepted a nd the value if they had been as warranted

for the lease term, unless special circumstances show proximate damages of a

different amount, together with incidental and consequential damages, less expenses

saved in consequence of the lessor's default or breach of warranty.