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HomeCommercial CodeDiv. 10Ch. 5Art. 2§ 10517 Lessee Revocation Of Acceptance

§ 10517 Lessee Revocation Of Acceptance

Commercial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 10517 Lessee Revocation Of Acceptance

This law lets a renter cancel their acceptance of a rented space or item if it has a problem that hurts its value, or if the landlord breaks the lease.

Key Takeaways

  • •A renter can cancel acceptance if a defect seriously hurts the value of the rented item or space.
  • •Cancellation is allowed when the renter reasonably expected the problem to be fixed but it wasn't, or when the problem wasn't discovered until after acceptance.
  • •The renter must act quickly after discovering the issue and must tell the landlord about the cancellation.
  • •Revoking acceptance gives the renter the same rights as if they had originally rejected the item.

Example

A small business rents a storefront that was promised to have a working heating system. After moving in, the heater breaks and the landlord doesn't fix it for weeks, making the space too cold to work in.

Because the heating problem seriously reduces the store's value and the landlord didn't fix it, the business can cancel the lease acceptance and treat the space as if they had rejected it.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 10517 Lessee Revocation Of Acceptance

(a) A lessee may revoke acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to the lessee if the lessee has accepted it: (1) Except in the case of a finance lease, on the reasonable assumption that its nonconformity would be cured and it has not been seasonably cured; or (2) Without discovery of the nonconformity if the lessee’s acceptance was reasonably induced either by the lessor’s assurances or, except in the case of a finance lease, by the difficulty of discovery before acceptance. (b) A lessee may revoke acceptance of a lot or commercial unit if the lessor defaults under the lease contract and the default substantially impairs the value of that lot or commercial unit to the lessee. (c) If the lease agreement so provides, the lessee may revoke acceptance of a lot or commercial unit because of other defaults by the lessor. (d) Revocation of acceptance must occur within a reasonable time after the lessee discovers or should have discovered the ground for it and before any substantial change in condition of the goods which is not caused by the nonconformity. Revocation is not effective until the lessee notifies the lessor. (e) A lessee who so revokes has the same rights and duties with regard to the goods involved as if the lessee had rejected them. (Amended by Stats. 1991, Ch. 111, Sec. 55. Effective July 15, 1991.)

Last verified: January 10, 2026

Key Terms

lesseerevoke acceptancenonconformitysubstantially impairslessorreasonable timenotify

Related Statutes

  • § 10512 Lessee Rejection Obligations
  • § 10516 Lessee Rent And Acceptance
  • § 10522 Lessee Recovery Of Goods
  • § 10501 Lease Default Enforcement Rights
  • § 10502 Lease Default Notice Waiver

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Commercial Code. Section 10517.
View Official Source