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HRS §490:2A-510

Rejecting bad deliveries in installment leases

This section explains when a lessee can reject a delivery under an installment lease. A delivery can be rejected if it is seriously defective and cannot be fixed, or if required documents are wrong. If the problem is fixable and the lessor promises to fix it, the lessee must accept the delivery. Serious problems with one delivery can make the whole lease default.

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The statute, as written — Installment lease contracts: rejection and default

(a) Under an installment lease contract a lessee may reject any delivery that is nonconforming if the nonconformity substantially impairs the value of that delivery and cannot be cured or the nonconformity is a defect in the required documents; but if the nonconformity does not fall within subsection (b) and the lessor or the supplier gives adequate assurance of its cure, the lessee must accept that delivery. (b) Whenever nonconformity or default with respect to one or more deliveries substantially impairs the value of the installment lease contract as a whole there is a default with respect to the whole. But, the aggrieved party reinstates the installment lease contract as a whole if the aggrieved party accepts a nonconforming delivery without seasonably notifying of cancellation or brings an action with respect only to past deliveries or demands performance as to future deliveries.
Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.