400.2A-504. (1) Damages payable by either party fordefault, or any other act or omission, including indemnity forloss or diminution of anticipated tax benefits or loss or damageto lessor's residual interest, may be liquidated in the leaseagreement but only at an amount or by a formula that isreasonable in light of the then anticipated harm caused by thedefault or other act or omission.
(2) If the lease agreement provides for liquidation ofdamages, and such provision does not comply with subsection (1),or such provision is an exclusive or limited remedy thatcircumstances cause to fail of its essential purpose, remedy maybe had as provided in this Article.
(3) If the lessor justifiably withholds or stops deliveryof goods because of the lessee's default or insolvency (Section400.2A-525 or 400.2A-526), the lessee is entitled to restitutionof any amount by which the sum of his payments exceeds:
(a) the amount to which the lessor is entitled by virtue ofterms liquidating the lessor's damages in accordance withsubsection (1); or
(b) in the absence of those terms, twenty percent of thethen present value of the total rent the lessee was obligated topay for the balance of the lease term, or, in the case of theconsumer lease, the lesser of such amount or five hundreddollars.
(4) A lessee's right to restitution under subsection (3) issubject to offset to the extent the lessor establishes:
(a) a right to recover damages under the provisions of thisArticle other than subsection (1); and
(b) the amount or value of any benefits received by thelessee directly or indirectly by reason of the lease contract.
400.2A-504. (1) Damages payable by either party fordefault, or any other act or omission, including indemnity forloss or diminution of anticipated tax benefits or loss or damageto lessor's residual interest, may be liquidated in the leaseagreement but only at an amount or by a formula that isreasonable in light of the then anticipated harm caused by thedefault or other act or omission.
(2) If the lease agreement provides for liquidation ofdamages, and such provision does not comply with subsection (1),or such provision is an exclusive or limited remedy thatcircumstances cause to fail of its essential purpose, remedy maybe had as provided in this Article.
(3) If the lessor justifiably withholds or stops deliveryof goods because of the lessee's default or insolvency (Section400.2A-525 or 400.2A-526), the lessee is entitled to restitutionof any amount by which the sum of his payments exceeds:
(a) the amount to which the lessor is entitled by virtue ofterms liquidating the lessor's damages in accordance withsubsection (1); or
(b) in the absence of those terms, twenty percent of thethen present value of the total rent the lessee was obligated topay for the balance of the lease term, or, in the case of theconsumer lease, the lesser of such amount or five hundreddollars.
(4) A lessee's right to restitution under subsection (3) issubject to offset to the extent the lessor establishes:
(a) a right to recover damages under the provisions of thisArticle other than subsection (1); and
(b) the amount or value of any benefits received by thelessee directly or indirectly by reason of the lease contract.
400.2A-504. (1) Damages payable by either party fordefault, or any other act or omission, including indemnity forloss or diminution of anticipated tax benefits or loss or damageto lessor's residual interest, may be liquidated in the leaseagreement but only at an amount or by a formula that isreasonable in light of the then anticipated harm caused by thedefault or other act or omission.
(2) If the lease agreement provides for liquidation ofdamages, and such provision does not comply with subsection (1),or such provision is an exclusive or limited remedy thatcircumstances cause to fail of its essential purpose, remedy maybe had as provided in this Article.
(3) If the lessor justifiably withholds or stops deliveryof goods because of the lessee's default or insolvency (Section400.2A-525 or 400.2A-526), the lessee is entitled to restitutionof any amount by which the sum of his payments exceeds:
(a) the amount to which the lessor is entitled by virtue ofterms liquidating the lessor's damages in accordance withsubsection (1); or
(b) in the absence of those terms, twenty percent of thethen present value of the total rent the lessee was obligated topay for the balance of the lease term, or, in the case of theconsumer lease, the lesser of such amount or five hundreddollars.
(4) A lessee's right to restitution under subsection (3) issubject to offset to the extent the lessor establishes:
(a) a right to recover damages under the provisions of thisArticle other than subsection (1); and
(b) the amount or value of any benefits received by thelessee directly or indirectly by reason of the lease contract.
