Commercial Code section 10514

(a)

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:

(1)

If, stated seasonably, the lessor or the supplier could have cured it (Section 10513); or

(2)

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.

(b)

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.

Source: Section 10514, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=COM§ionNum=10514.­ (accessed Jun. 2, 2025).

Last Updated

May 12, 2025

§ 10514’s source at ca​.gov