Okla. Stat. tit. 12A § 2A-221

Current through Laws 2024, c. 453.

Section 2A-221 - Casualty to identified goods

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 Section 29 of this act, then:

(a) if the loss is total, the lease contract is avoided; and

(b) 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 his 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.

Okla. Stat. tit. 12A, § 2A-221

Added by Laws 1988, HB 1683, c. 86, § 30, eff. 11/1/1988.

Oklahoma Code Comment

The issue addressed by this section perhaps could have been resolved under 16 Oklahoma Statutes §§ 538(2) and 539(4) before their repeal by H.B. 1683, but no reported case was located. In any event, the principle of the section is the same as that in UCC § 2-613, and the latter section reflects prior Oklahoma law. See, e.g., Central Commercial Oil Co. v. Indian Territory Illuminating Oil Co., 41 P.2d 683 (Okla.1935) (where the contracting parties contemplate fulfillment of the contract only in the event of the continued existence of the subject matter, if before performance the thing ceases to exist the contract also ceases).

The 1991 amendments make no change here.