(810 ILCS 5/2A-508) (from Ch. 26, par. 2A-508)

Sec. 2A-508.

Lessee's remedies.

(1) If a lessor fails to deliver the goods in conformity to
the lease contract (Section 2A-509) or repudiates the lease
contract (Section 2A-402), or a lessee rightfully rejects the
goods (Section 2A-509) or justifiably revokes acceptance of the
goods (Section 2A-517), then with respect to any goods
involved, and with respect to all of the goods if under an
installment lease contract the value of the whole lease contract is
substantially impaired (Section 2A-510), the lessor is in default
under the lease contract and the lessee may:

(a) cancel the lease contract (Section 2A-505(1));

(b) recover so much of the rent and security as has been paid and is just under the

circumstances;

(c) cover and recover damages as to all goods affected whether or not they have been

identified to the lease contract (Sections 2A-518 and 2A-520), or recover damages for nondelivery (Sections 2A-519 and 2A-520);

(d) exercise any other rights or pursue any other remedies provided in the lease

contract.

(2) If a lessor fails to deliver the goods in conformity to
the lease contract or repudiates the lease contract, the lessee may
also:

(a) if the goods have been identified, recover them
(Section 2A-522); or

(b) in a proper case, obtain specific performance or
replevy the goods (Section 2A-521).

(3) If a lessor is otherwise in default under a lease
contract, the lessee may exercise the rights and pursue the remedies
provided in the lease contract, which may include a right to cancel the
lease, and in Section 2A-519(3).

(4) If a lessor has breached a warranty, whether express
or implied, the lessee may recover damages (Section 2A-519(4)).

(5) On rightful rejection or justifiable revocation of
acceptance, a lessee has a security interest in goods in the
lessee's possession or control for any rent and security that has
been paid and any expenses reasonably incurred in their
inspection, receipt, transportation, and care and custody and
may hold those goods and dispose of them in good faith and in a
commercially reasonable manner, subject to
Section 2A-527(5).

(6) Subject to the provisions of Section 2A-407, a lessee,
on notifying the lessor of the lessee's intention to do so, may
deduct all or any part of the damages resulting from any default
under the lease contract from any part of the rent still due
under the same lease contract.

(Source: P.A. 87-493.)