2025 Session Last amended: 1991 session

§ 336.2A-503 — Modification or Impairment of Rights and Remedies

Plain-Language Summary

This section lets the parties to a lease agree to remedies for default in addition to or instead of those the law provides, and to limit or change the amount of damages that can be recovered. A remedy is optional unless the lease expressly makes it the exclusive remedy, and if an exclusive or limited remedy fails its essential purpose or is unconscionable, the other remedies in the article become available. Consequential damages may be limited, altered, or excluded unless doing so is unconscionable: excluding such damages for personal injury involving consumer goods is presumed unconscionable, while excluding them for commercial loss is not. Rights and remedies for obligations that are collateral or ancillary to the lease are not affected by this article.

336.2A-503 MODIFICATION OR IMPAIRMENT OF RIGHTS AND REMEDIES.

(1) Except as otherwise provided in this article, the lease agreement may include rights and remedies for default in addition to or in substitution for those provided in this article and may limit or alter the measure of damages recoverable under this article.

(2) Resort to a remedy provided under this article or in the lease agreement is optional unless the remedy is expressly agreed to be exclusive. If circumstances cause an exclusive or limited remedy to fail of its essential purpose, or provision for an exclusive remedy is unconscionable, remedy may be had as provided in this article.

(3) Consequential damages may be liquidated under section 336.2A-504, or may otherwise be limited, altered, or excluded unless the limitation, alteration, or exclusion is unconscionable. Limitation, alteration, or exclusion of consequential damages for injury to the person in the case of consumer goods is prima facie unconscionable but limitation, alteration, or exclusion of damages where the loss is commercial is not prima facie unconscionable.

(4) Rights and remedies on default by the lessor or the lessee with respect to any obligation or promise collateral or ancillary to the lease contract are not impaired by this article.

History:

1989 c 232 art 1 s 2A-503; 1991 c 171 art 1 s 10

History: History: 1989 c 232 art 1 s 2A-503; 1991 c 171 art 1 s 10

Practical Notes

You can write your own default remedies into a lease and cap or change the damages, but a remedy is only exclusive if the lease clearly says so, and an exclusive remedy that fails its purpose or is unconscionable will not bar the other remedies. You can usually limit or exclude consequential damages, except that excluding them for personal injury in a consumer-goods lease is presumed unfair, while limiting them for commercial losses generally is not.

Source: Minnesota Office of the Revisor of Statutes