55-2A-514: Waiver of lessee's objections.

(1) In rejecting goods, a lessee's failure to state a particular defect that is ascertainable by reasonable inspection precludes the lessee from relying on the defect to justify rejection or to establish default:

(a) if, stated seasonably, the lessor or the supplier could have cured it (Section 55-2A-513 NMSA 1978); or

(b) between merchants if the lessor or the supplier after rejection has made a request in writing for a full and final written statement of all defects on which the lessee proposes to rely.

(2) A lessee's failure to reserve rights when paying rent or other consideration against documents precludes recovery of the payment for defects apparent in the documents.

OFFICIAL COMMENTS

UCC Official Comments © by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.

Uniform Statutory Source: - Section 2-605 [55-2-605 NMSA 1978].

Changes: - Revised to reflect leasing practices and terminology.

Purposes:

1. The principles applicable to the commercial practice of payment against documents (Subsection 2) are explained in official Comment 4 to Section 2-605 [55-2-605 NMSA 1978], the statutory analogue to this section.

2. As to the use of a record other than a writing and communications that are not written, see Section 2A-103 [55-2A-103 NMSA 1978], Comment (g).

Cross Reference: - Section 2-605 [55-2-605 NMSA 1978] official comment 4.

"Between merchants". Section 2-104(3) [55-2-104 NMSA 1978].

"Goods". Section 2A-103(1)(h) [55-2A-103 NMSA 1978].

"Lessee". Section 2A-103(1)(n) [55-2A-103 NMSA 1978].

"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].

"Rights". Section 1-201(36) [55-1-201 NMSA 1978].

"Seasonably". Section 1-204(3) [55-1-204 NMSA 1978].

"Supplier". Section 2A-103(1)(x) [55-2A-103 NMSA 1978].

"Writing". Section 1-201(46) [55-1-201 NMSA 1978].